Entrepreneur’s pension insurance

The entrepreneur’s pension insurance policy, i.e. YEL insurance, is the basis of entrepreneurs’ social security. It is a statutory insurance policy you are obliged to take out if you are an entrepreneur aged 18–69, your business activities will continue for at least 4 months and your estimated annual YEL income is at least 9010,28 euros (in 2024). You should take out the insurance policy as soon as you fulfil the criteria but no later than within 6 months of starting the business activities subject to the Finnish Self-employed Persons’ Pension Act. You may not replace the statutory YEL insurance by taking out a voluntary pension insurance policy. 

You are obliged to take out YEL insurance if

  • you are aged 18–69*

  • you work as an entrepreneur 

  • your business activities will continue for at least 4 consecutive months 

  • your estimated annual YEL income will be at least 9010,28 euros (in 2024). 

*The upper age limit for old-age pension is 68 for people born in 1957 or earlier, 69 for people born in 1958–1961 and 70 for people born in 1962 or later.

YEL income determines your insurance contributions

  • The pension and social security benefits of an entrepreneur, such as sick allowance and unemployment allowance, are based on the YEL income. 
  • Your YEL income also determines your insurance contributions. The YEL income is the value of your work input in your own company in a 12-month period. 
  • Your YEL income should correspond to a salary you would pay to an employee with the same qualifications as you.  
  • Every new entrepreneur is eligible for a 22% discount on the YEL contributions during the first four years. 
  • Your YEL insurance contributions are fully deductible in either personal or business taxation. 

YEL – the entrepreneur’s pension cover

  • Entrepreneurs have to ensure pension cover for themselves.
  • As an entrepreneur, you are obliged to take out a YEL insurance policy when you fulfil the statutory criteria. Simply owning a business does not require you to take out YEL insurance but it is obligatory when you work as an entrepreneur. 
  • You accrue pension on all the earnings from your work in salaried employment and as an entrepreneur. 
  • In most cases, taking out YEL insurance is obligatory for entrepreneurs. If you work as an entrepreneur while you receive old-age pension, taking out YEL insurance is voluntary. 
  • Nordea has partnered up with Varma to offer both the TyEL and YEL insurance policies.