Varma helps entrepreneurs define the appropriate level of confirmed YEL income

Statutory YEL insurance is the most important insurance for entrepreneurs. Entrepreneurs accrue pension through YEL insurance, and social security for entrepreneurs is also otherwise based on the confirmed YEL income. The employment pension insurance company must confirm an entrepreneur’s confirmed income so that it corresponds to the pay for corresponding work, that is, the monetary value of the entrepreneur’s work contribution. In terms of the entrepreneur’s livelihood, it is of primary importance that the amount of confirmed income is determined correctly already at the beginning of entrepreneurship. Varma’s experts help entrepreneurs determine the appropriate level of confirmed income.

Underinsurance is a well-known phenomenon related to the pension coverage and social security of entrepreneurs, and it concerns especially young and new entrepreneurs. Underinsurance means that the level of confirmed income has been set too low considering the entrepreneur’s work contribution. In this case, the entrepreneur’s pension coverage and other social security remain modest, often at the level of basic security. It is not possible to increase your confirmed income afterwards in order to receive better benefits.

At Varma, we want our entrepreneur customers to accrue pension that corresponds to their work contribution and to receive a sufficient sickness allowance, parental allowance, unemployment benefit and other benefits, as appropriate. This is why our experts help entrepreneurs with all questions related to estimates of confirmed income. Our job is to ensure that the estimate of confirmed income is at the appropriate level.

Determining and confirming YEL income

The confirmed YEL income must correspond to an annual pay that would be paid for corresponding work to a person having the same professional skills as the entrepreneur. Whether or not the entrepreneur e.g. receives salary from their company has no effect on the amount of confirmed income. Entrepreneurs can easily estimate the amount of confirmed income either through Varma’s online service or together with our expert.

Our task as a pension insurance company is to provide final confirmation for YEL income so that it corresponds to the value of the entrepreneur’s annual work contribution. YEL income confirmation is based on the YEL legislation that applies to all pension insurance companies. When confirming YEL income, we use the application instructions issued by the Finnish Centre for Pensions concerning the law and information obtained from the entrepreneurs themselves, such as the company’s field of business, turnover, the entrepreneur’s working hours and the entrepreneur’s own views on the appropriate level of confirmed income. The legitimate confirmed YEL income may differ from the entrepreneur’s own estimate.


In June, the Financial Supervisory Authority published a theme evaluation of the implementation of insurance that is compliant with the Self-employed Persons’ Pension Act (YEL). Varma has taken the measures required by the Financial Supervisory Authority.


You can reach us by phone at 010 192 100 or by chat on weekdays between 8 a.m. and 5 p.m.

Go to the Varma Online Service

Read more about YEL insurance

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