YEL – A necessary good

As self-employed you are responsible for your future retirement. The insurance must be arranged within six month after setting up business. All business activities of the self-employed person are insured with one insurance policy. The Self-Employed Persons' Pensions Act (YEL) also concerns foreign self-employed persons resident in Finland.

A self-emplyed person is

  • a person who is not working under an employment contract or in public office.
  •  the insured is aged 18-67
  • the business activity has lasted for at least four months
  • the estimated annual earned income is at least 7.645,25 euro (year 2017)

 YEL – The earned income

The earned income is the basis for the insurance. The income should correspond to the work input of the self-employed person (financial value of the work input). The pension amount and the insurance contribution are calculated on the basis of this income. It should be noted that the earned income also affects the self-employed person's other social security benefits, such as the sickness allowance.

Tax deduction

The insurance contribution is fully deductible in the taxation.