Light entrepreneurs are insured under YEL
Light entrepreneur means a self-employed person who independently sets the price of his/her work, procures customers and handles invoicing via an invoicing service company. As a light entrepreneur, you are not required to have your own company or a Business ID, which therefore makes it easy, for example, to try out a secondary occupation as an entrepreneur.
Basic information about YEL insurance for light entrepreneurs
- Light entrepreneurs are obligated to take out YEL insurance for themselves if their entrepreneurial activities last longer than four months and their YEL income, i.e. the value of their work input, is at least EUR 8,063.57 in one year (EUR 672 per month).
- Irregular but recurring entrepreneurial activity may also require taking out YEL insurance.
YEL is the basis for an entrepreneur’s social security
- Valid YEL insurance allows the entrepreneur to take out accident insurance for the self-employed.
- The YEL income is also used as the basis for determining daily sickness allowance and parental allowance, as well as unemployment benefits.
- An entrepreneur can join an unemployment fund for entrepreneurs if his/her YEL income is at least EUR 13,247 (2021) per year.