The insurance cover has been calculated using the following assumptions
The YEL earnings have been in force for two years. The unemployment cover has been calculated under the assumption that the person does not have dependent children. An estimated effect of the life expectancy coefficient is included. The person lives in Finland. The calculated insurance cover applies to this insurance only and should be considered approximations. The purchasing power of the pension estimate corresponds to present-day values.
Entrepreneurs are entitled to a daily sickness allowance when unable to work due to illness provided that they have worked as an employee or entrepreneur for at least three months prior to the disability. If the work requirement is not fulfilled, the entrepreneur is entitled to sickness allowance only after 55 consecutive days of disability. Entrepreneurs are entitled to unemployment allowance when becoming unemployed after ending their entrepreneurial activities. Receiving earnings-related unemployment allowance requires membership in an unemployment fund. The YEL insurance contribution can be paid by the entrepreneur or by the company. The contribution is deductible for both. YEL provides security also in the event of disability or the death of a family provider. YEL pension is the amount of old-age pension according to the earned income you entered.
Flexibility in YEL contributions
As a self-employed person, you can adjust your YEL contributions to flexibly adapt to your financial situation. You can pay 10–100 per cent higher contributions or 10–20 per cent lower insurance contributions.
You can flexibly adjust your YEL contributions if
your insurance is valid for the full calendar year with the same pension insurance company
you do not have overdue, unpaid YEL contributions
you do not yet receive earnings-related pension from Finland
you do not receive the contribution discount for new entrepreneurs
You can reduce your contributions for a maximum of three years within seven consecutive calendar years, but additional contributions, however, you can make every year.
Flexibility in YEL contributions only affects pension and not, for example, daily allowances or unemployment cover paid according to the Health Insurance Act. Those are calculated based on your confirmed YEL income.
If you want to use the flexibility option, send us a written notice. Be sure to submit the notice in good time, as the application must be processed and the additional contributions must be paid during the year of flexibility. If you need more information about the flexibility option, call us +358 10 192 102 or send us email to firstname.lastname@example.org.
The premium interest rate is a fixed part of the TyEL contribution used to bring the contribution from the theoretical due date of 1 July to the interest date in the calculation. The interest has influence on the payments, in the beginning of the year by reducing and in the end of the year by increasing payments due.
The premium interest rate is based on the 12-month TyEL benchmark rate quoted by Garantia, but it is always at least 2 per cent.
Since the level of the insurance contribution interest rate is lower than the level of the technical rate of interest, the interest rate benefit from focusing the provisional contributions on the first half of the year.
The premium interest rate used in this calculator is 2 per cent.
YEL insurance for the self-employed when entrepreneurial activities change