YEL calculator, where can I find one? When does a light entrepreneur need YEL insurance? What if you have forgotten to take out YEL insurance and your income limits have been exceeded? Or how does YEL relate to parental allowance? Don’t worry, we have answers for you.
1. YEL calculator, where do I find one?
You can check on the website of our partner ELO Mutual Pension Insurance Company to see how much your YEL contribution would be based on your income and how your YEL contribution would affect your sickness allowance, parental allowance or disability pension.
You can find the YEL calculator here
2. When do I need YEL?
You are subject to YEL if
- you are aged between 18 and 68
- your business activity is continuous for at least 4 months, and
- you have an income (remuneration) of at least EUR 9010,28 in 2024 (income limit in 2023 was EUR 8 575,45 ).
3. Minimum YEL – how much is it?
The amount of YEL is calculated on the basis of your self-assessed earned income. When you declare your annual income to a pension company, the YEL insurance is a certain percentage of your earned income.
In 2024 (also in 2023), the YEL contribution rates on earned income are
- 24.10% for 18-52 year olds
- 25.60% for those aged 53-62
- 24.10% from the beginning of the following year after the age of 63
As a self-employed person starting out and paying YEL for the first time, you will automatically receive a 22% reduction for the first 48 months of activity.
Please note that the minimum income required for unemployment benefit is EUR 14 803 per year (in year 2023 the minimun was EUR 13 573).
4. Is YEL compulsory?
You have six months to take out YEL insurance from the day you exceed the annual income limit (the income limit varies from year to year).
If you do not remember to take out YEL insurance within six months of exceeding the limit, you will have to pay six months’ YEL contributions retroactively, plus a penalty for non-payment.
YEL insurance is supervised by the Finnish Centre for Pensions (ETK).
5. Why does a light entrepreneur has to takeu out insurance under YEL?
As a light entrepreneur, freelancer or temporary worker, you are self-employed for pension insurance purposes (even if you do not own your own business) and must take care of your own occupational pension insurance.
In other words, the YEL insurance for self-employed persons is the same as the YEL insurance for light entrepreneurs.
YEL insurance is a cover for both the self-employed and the light entrepreneur if you retire, fall ill or take parental leave.
6. What does the YEL income limit mean?
If you earn more than EUR 9010,28 in 2024 (EUR 8,575.45 in 2023) as a light entrepreneur, you will need to take out YEL insurance.
In other words, YEL income limit for 2024 is EUR 9010,28.
7. How often will the YEL insurance be paid?
Most insurance companies allow you to split the payment of the YEL contribution into instalments of your choice. You can pay your YEL once a month or, for example, four times a year.
8. I am retired, but I work as a part-time light entrepreneur. Do I have to take out YEL insurance too?
If you are retired, you do not need to take out YEL insurance. But you can take out voluntary YEL insurance if you wish. This will give you a new pension.
9. What if I am a part-time light entrepreneur and employed elsewhere? Do I need YEL insurance too?
Yes, if your income exceeds the annual income limit.
If you fall ill, your daily allowance from Kela is based on the sum of your full-time salary and your YEL income.
If you belong to an unemployment fund for employees, you should check with your fund to see whether you can continue to be covered by the unemployment fund as a light entrepreneur with YEL insurance.
10. What if I don’t want to take out YEL insurance but save for my pension myself?
If your income from work exceeds the annual income limit, you are obliged to take out YEL insurance. Your own pension savings are not affected.
However, YEL insurance should not only be seen as an obligation, but also as a safety net for different life situations.
If you are a light entrepreneur (or self-employed), your YEL income will determine the amount of your future pension. The higher your earned income (and your YEL insurance), the higher the pension you will receive.
You can estimate the amount of your pension here.
In addition to your pension, your YEL income will also affect your social security, and you will receive parental allowance, sickness and rehabilitation allowance, unemployment benefit, disability and survivor’s pension.
11. How is YEL related to parental allowance?
The amount of maternity, special maternity, paternity, parental allowance and partial parental allowance is based on annual income.
If you are a light entrepreneur insured under the YEL, your annual income is calculated on the basis of your YEL income.
If you are in paid employment alongside your entrepreneurial activity, both your paid income and your YEL income will be taken into account for your annual income.
For more information, click here.
Extra: Light entrepreneur coming to Finland from abroad
When you live and work in Finland, you must take out YEL insurance.
Your nationality has no effect.
