Flex pay for YEL insurance contributions
You can accrue additional pension for yourself during good financial years by paying a higher YEL contribution or opt to reduce the contribution during less profitable years. This is referred to as the YEL flex pay system. YEL flex pay temporarily decreases or increases your insurance contributions for one calendar year at a time.
Flex pay is possible if:
- Your YEL insurance policy is valid for the entire year in the same pension company
- There are no outstanding payments on your YEL insurance policy
- You are not yet receiving employment pension from Finland
- You are not receiving the discount for a starting entrepreneur.
You can pay an additional contribution every year, if you want, but you can only decrease your contribution, at the most, three times within a seven-year period. The combined total of the additional contribution and your YEL insurance contribution must not exceed the maximum for YEL income, or 180,750.00 euro in 2020. (2021: 183,125.00 euro)
Additional contributions are tax deductible either for the company or the entrepreneur, as determined by the payer information submitted to the pension company.
Flex pay only concerns the YEL income that serves as the basis for your future pension, it does not affect other social benefits, such as the sickness allowance, that are determined in accordance with the confirmed YEL income based on work input.
Check the flex pay amount and fill out a flex pay application in Elo’s Online Service.