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 9,010.28 (in 2024).
* 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
When YEL and when TyEL?
YEL insurance is a self-employed person's personal pension insurance, meaning you need YEL insurance if you work as an entrepreneur in your own company or as a light entrepreneur. With YEL insurance, a self-employed person accrues pension and takes care of their other social security.
TyEL, on the other hand, is pension insurance that an employer takes out for their employees. If you have an employee and you pay them wages or a salary, you must take out TyEL insurance. TyEL insurance accrues pension for the employee. Read more about TyEL insurance.
Is YEL insurance mandatory?
YEL insurance is mandatory insurance for the self-employed. In other words, it is statutory insurance. If you work as an entrepreneur or a light entrepreneur and you are between the ages of 18 and 69, you are obligated to take out YEL insurance for yourself if your self-employed activities last for at least four months. If your self-employed activities last less than four months, or if they are very small-scale activities and the value of your work input is low (less than EUR 751 per month in 2024), you do not have to take out YEL insurance.
When should YEL insurance be taken out?
YEL insurance should be taken out when you start your business activities. The starting date of your YEL insurance is the same as the starting date of your business activities. YEL insurance must be taken out within six months of the start of your business activities. This is referred to as the half-year arrangement period. The starting date of your YEL insurance, however, is always the date that you start your business activities.
Take out YEL insurance easily online
Can YEL insurance be taken out retroactively?
YEL insurance can be taken out retroactively. Keep in mind, however, that if you take out YEL insurance, for example, three months after the date when you started your business activities, you will also have to pay the insurance contributions retroactively from the date when your business activities started.
And if you take out YEL insurance only after the half-year arrangement period, you might end up having to pay not only the regular YEL contribution but also a penalty for neglecting to arrange pension cover. The penalty is at least 10 per cent of the amount of the YEL contribution during the period of neglect. The longer the retroactive period of your YEL insurance is, the more YEL contributions you will have to pay at once.
Read more about taking YEL insurance retroactively
What happens if I don’t take out YEL insurance?
Since YEL is statutory insurance for the self-employed, the Finnish Centre for Pensions monitors whether entrepreneurs take out the insurance or not. If you do not take out YEL insurance, the Finnish Centre for Pensions could ultimately take out YEL insurance for you. If that happens, you might end up having to pay not only the regular YEL contribution but also a penalty for neglecting to arrange pension cover. The penalty is at least 30 per cent and at most 100 per cent of the amount of the YEL contribution during the period of neglect. The State Treasury confirms the amount of the penalty for neglecting to arrange pension cover.
Can YEL insurance be frozen?
YEL insurance cannot be directly frozen but it can be terminated, and new insurance can be taken out again later. When your self-employed activities are interrupted for a longer period of time, 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. When you later resume your work as an entrepreneur, take out new YEL insurance.
Read more about terminating YEL insurance
Log in to the Varma Online Service and apply for 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