YEL insurance

YEL insurance is statutory pension insurance for the self-employed. YEL is, without a doubt, the self-employed professional's most important insurance. You need YEL insurance if you are self-employed or a light entrepreneur. YEL insurance accrues pension for the self-employed. Self-employed persons’ other social security, such as parental allowance and unemployment allowance are based on YEL confirmed income.

When do I need YEL insurance?

You need YEL insurance if

  • you are between the ages of 18 and 69*,
  • you work in your own company or as a light entrepreneur,
  • your self-employed activities continue for a minimum of four months, and
  • your YEL income, i.e. the value of your work input, is at least EUR 8,063.57 per year (in 2021).

* For those born in 1957 or earlier, the upper age limit for YEL insurance is 68, for those born between 1958 and 1961 it is 69 and for anyone younger than this, 70 years.

Usually, the starting date of your YEL insurance is the day on which your self-employment has begun. You have six months to take out insurance. YEL insurance is personal and one YEL insurance policy covers all your self-employed activities.

Read more about when you need YEL insurance

Information in Estonian: Teave YEL-i kindlustuse kohta eesti keeles

Information in Russian: Информация о пенсионном страховании предпринимателей (YEL) на русском языке

Terminating the YEL insurance

When your self-employed activities end, let us know so that we can terminate your YEL insurance. YEL insurance can be terminated retroactively or you can inform Varma of the termination beforehand. The last day when your YEL insurance will be valid is your last working day. If you continue your self-employment later on, take out new YEL insurance.

Read more about terminating YEL insurance

Log in to Varma Online Service and send notice of termination

YEL insurance also for light entrepreneurs

Light entrepreneurship has increased dramatically in recent years. Light entrepreneurs employ themselves and take care of invoicing through an invoicing service company. Light entrepreneurship makes it easy, for example, to try out part-time self-employment. As a light entrepreneur, you also need YEL insurance.

YEL insurance also makes up the basis for light entrepreneurs’ social security. Also for light entrepreneurs, the YEL income is used as the basis for determining daily sickness allowance and parental allowance, as well as unemployment benefits.

Read more about YEL insurance for light entrepreneurs

What is YEL income?

Your YEL income is an estimate of the monetary value of your work input. The YEL income must be set at the right level right from the start, as it is used as the basis for calculating your pension accrual and your social security. It is the basis for the self-employed person’s daily sickness allowance, parental allowance and unemployment allowance, for example.

The lower limit of YEL income is EUR 8,063.57 and the upper limit is EUR 183,125 per year (in 2021). You can join an unemployment fund for the self-employed if your YEL income is at least EUR 13,247 a year (2021).

Your YEL income must equal the annual salary that would be paid to an employee with the same professional skills as you have for carrying out the same work. You can think about what your salary expectation would be if you worked as an employee instead of being self-employed. Include in your assessment the earnings level in the sector, as well as the number of hours you work, your company’s net sales and whether your business is seasonal. Varma’s professional customer service agents can help you in the assessment.

Read more about YEL income

Keep your YEL insurance up to date

The idea is to change the YEL income as your self-employment continues. Decrease your confirmed income if you reduce your work input, for instance. Increase your confirmed income as you gain more experience and your work’s value grows.

If, at the start of the YEL insurance, you start with the lowest possible YEL income, remember to increase your YEL income to an appropriate level when your company’s operations stabilise. This way, your pension accrues according to your sector’s true earnings level and the basis for your social security is assured. You can change your YEL income as often as you need to, but not retroactively.

Change your YEL income

How are YEL insurance contributions calculated?

The price of YEL insurance depends on your YEL income. The YEL insurance contribution is a percentage of your YEL income. In 2021, the contribution percentages for YEL insurance are

  • 24.10% for those aged 18–52
  • 25.60% for those aged 53–62
  • 24.10% for those aged 63–69

When you are newly self-employed, you get a 22% discount on your YEL insurance contributions for the first four years. The newly self-employed get the discount automatically when they take out YEL insurance. The discount can be used over two separate periods at most.

The YEL insurance contributions are fully tax deductible. You can deduct YEL contributions in your personal taxation or in your company’s taxation.

The YEL contribution falls due on the 20th day of the month or on the following weekday. You can divide up your YEL insurance contribution into instalments of your choice. You can pay your contribution in 1, 2, 3, 4, 6 or 12 instalments, whatever suits you best. At least half of the annual YEL insurance contribution has to be paid before August. When you order an e-invoice or start using online invoicing, YEL insurance contributions become an easy task to manage in the rush of daily life.

Read more about YEL insurance contributions

Flexible YEL contribution depending on your situation

The YEL insurance contribution is flexible, depending on your financial situation. When times are good, you can improve your pension cover by paying an additional 10–100 per cent in contributions to your YEL insurance. You can pay additional contributions annually if you wish and have it deducted in taxation like all your other YEL insurance contributions.

You can also temporarily lower your YEL insurance contributions by 10–20 per cent. You can reduce your contributions for a maximum of three years within seven consecutive calendar years.

You can flexibly adjust your YEL contributions if your YEL insurance is valid for the full year of flexibility at a single earnings-related pension company. If you wish to apply the flexibility, you cannot have any outstanding contributions in your YEL insurance, you must not receive the discount for the newly self-employed and you must not receive earnings-related pension from Finland. Send us a flexibility application and we will check if it is possible to use the flexibility option.

YEL insurance flexibility is intended for a temporary increase or decrease in the contribution. The YEL income must reflect your work input and operating conditions. Flexibility does not replace the usual change made to YEL income.

Read more about flexible YEL insurance contributions

If you are experiencing difficulties in paying your YEL insurance invoice by the due date, you can apply for an extended term of payment in Varma Online Service.

Apply for an extended term of payment in Varma Online Service

As Varma’s YEL insurance customer you get suitable service for your situation

When you have Varma’s YEL insurance, you will receive personal service and support at different stages of your self-employment:

  • All of Varma’s YEL insurance customers gain access to a clear and easy-to-use online service where they can manage their YEL insurance matters – anywhere and anytime.
  • Our YEL insurance experts support you in navigating all the twists and turns of your life and business. Don’t hesitate to contact us with any questions about YEL insurance.
  • When you are just starting out our self-employment, you automatically get a discount of 22% on your YEL insurance contributions for a period of four years.

Take out YEL insurance with Varma

Help with using our services

Take care of your YEL matters online

In our online service, you can, for instance

  • apply for a change in your YEL income
  • view your past and future YEL contribution
  • request an extended term of payment for an invoice

Sign in to the service using your personal banking codes.

Log in to Varma Online Service