YEL and parental allowances for the self-employed

YEL insurance accrues your pension and also affects the amount of various benefits paid by Kela, including parental allowance. Your YEL income determines how much parental allowance you can receive.

You can apply to Kela for the following parental benefits:

• Pregnancy allowance
• Special pregnancy allowance
• Parental allowance
• Partial parental allowance

The amount of parental allowance is based on your YEL income. Kela uses the annual income to calculate the allowance. For the self-employed, the annual income is based on the YEL income.

Annual income is calculated based on the 12 calendar months preceding the calendar month before your parental allowance begins.

Use our calculator to see how your YEL income affects your parental allowance and other benefits

If your YEL income has changed during the 12-month review period, Kela will use your average YEL income when calculating the allowance.

Read more about parental allowances for the self-employed on Kela’s website

If you do not work as a self-employed person during your family leave, your YEL insurance can be terminated as of your last working day. When you return to work in your business, you will need to take out a new YEL insurance policy.

Terminate your YEL insurance in Varma Online Service

Read more about terminating YEL insurance

If you continue working during your family leave and your work input exceeds the minimum threshold set out in the YEL Act, your YEL insurance cannot be terminated. If your work input decreases during your family leave, apply for a change in your YEL income.

Apply for a change in your YEL income in Varma Online Service