YEL insurance is the most important insurance for the newly self-employed
When you are just starting your self-employment you will get a 22% discount on your YEL insurance contributions for the first four years. YEL contributions are fully deductible either from your personal income tax or from your company’s taxable income.
YEL insurance is based on YEL income. YEL income refers to the monetary value of your own work input on an annual level.
YEL insurance is statutory pension insurance for the self-employed. You cannot replace YEL insurance with voluntary pension insurance. You have six months to take out YEL insurance. The starting date of the insurance must, however, always be the date when you have started your self-employment.