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. This makes it easy, for example, to try out a secondary occupation as self-employed.
Light entrepreneurs are obligated to take out YEL insurance for themselves if their self-employment last longer than four months and their YEL income, i.e. the value of their work input, is at least €8,063.57 in one year (€672 per month).
Irregular but recurring self-employment may also require taking out YEL insurance.
YEL is the basis for a light entrepreneur’s social security. Valid YEL insurance allows the light 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.
A light entrepreneur can join the unemployment fund for the self-employed if their YEL income is at least €13,247 (2021) per year.