Determination of YEL income

YEL income refers to the monetary value of your own work input. As a self-employed person your pension accrual and other social security benefits are calculated according to YEL income. The easy-to-use YEL income calculator helps you determine the right level for your YEL income based on your sector and turnover.

What is YEL income?

The confirmed income under YEL is an estimate of the monetary value of a self-employed person’s work input. Your YEL income must equal the annual salary that you would have to pay to an employee with the same professional skills as you have for carrying out the same work. The easy-to-use YEL income calculator gives you a YEL income recommendation based on your sector and turnover.

Try the YEL income calculator

A self-employed person's pension accrual and other social security benefits are calculated according to YEL income. It is used to calculate the amount of, for example, the entrepreneur's sickness allowance, parental allowance and unemployment allowance. It also determines your YEL insurance contribution.

The lower limit of YEL income is EUR 9,010.28 and the upper limit is EUR 204,625 per year (in 2024). You can join an unemployment fund for the self-employed if your YEL income is at least EUR 14,803 (in 2024).

Use the YEL calculator to estimate the impact of your YEL income on contributions and benefits

Estimate the correct level of YEL income with our calculator

The YEL income calculator gives you a clear recommendation on the amount of YEL income, which is based on the median salary in your sector and your company’s turnover. The calculator also gives you a margin within which you can choose a YEL income level that is up to 30 per cent lower or higher than the recommended level.

This is how to use the calculator

  1. Select your company’s sector from the menu. Search for the sector by writing the name or the code of the sector in the field.
  2. Enter an estimate of your turnover for the next 12 months in the calculator.
  3. See what your recommended YEL income is and take out YEL insurance easily online! Indicate the estimate of your YEL income in your application.

    If you already have YEL insurance, compare the calculator's recommendation with your current YEL income. If your own YEL income is below the recommendation, apply for a change to your income easily in Varma Online Service.

The YEL income calculator is based on statistics provided and maintained by the Finnish Centre for Pensions (ETK). It offers a uniform basis for estimating YEL income both for pension companies and the self-employed themselves. Its objective is to ensure that entrepreneurs have proper pension and other social benefits.

Do remember that the calculator is just a tool for determining YEL income, and it does not take into account all possible situations. When applying for YEL insurance or a change to your current YEL income, you can apply for a YEL income amount other than that recommended by the calculator if you feel that other circumstances related to the scope of your activities or your professional skills should be considered.

How is YEL income determined?

Give us your own estimate of the value of your work input, i.e. your YEL income, in the YEL insurance application. We confirm your YEL income on a case-by-case basis. We consider your own estimate and the YEL income recommendation in accordance with the Finnish Centre for Pensions’ application guidelines. In addition to the turnover and sector, the determination also takes into account other elements, including the number of hours you put in and the possible seasonal nature of your business. A self-employed person’s YEL income does not mean the profit your company makes or the salary you pay yourself as an entrepreneur.

When we confirm your YEL income so that it reflects the value of your work input, your pension accrual and social security are based on a realistic earnings level in your sector. If you fall ill, for example, your sickness allowance will also be determined based on the realistic earnings level in your sector.

ETK’s YEL income recommendations are especially meant for entrepreneurs with well-established activities. A newly self-employed person’s YEL income may be lower than the recommendation if there are fewer customers or less work in the beginning. The so-called minimum YEL income (€9,010.28 in 2024) is only meant to be a part-time entrepreneur’s YEL income, however.

YEL income is always estimated at the annual level. This does not mean the calendar year from January to December, but rather a 12-month period.

Example
An entrepreneur’s YEL insurance is in force from 1 April to 31 December. EUR 24,000 has been confirmed as the entrepreneur’s YEL income. The entrepreneur’s insurance contributions and pension accrual are calculated based on the annual YEL income, however, only for the period when the insurance is valid, which, in this case, is nine months, from April to December.

Can YEL income be changed?

The idea is that an entrepreneur's YEL income is changed whenever necessary. As long as your YEL insurance is in force, it is your responsibility to report any long-term changes in your work input. Inform us of changes in, for example, your turnover, working hours or sector. So apply for a change in your YEL income when, for example, you switch from part-time to full-time self-employment or vice versa.

You can apply for a change in your YEL income as often as you need to. You can change your YEL income with effect from the date of arrival of your notification at the earliest, in other words, YEL income cannot be changed retroactively.

Apply for a change in your YEL income easily in the Varma Online Service. You can find the application under YEL insurance > Insurance policy information > Apply for a change in your YEL income. We will ask you for further information if needed.

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

We will send you a decision on the YEL income change. The decision is appealable, which means that you can appeal the decision within 30 days. You can find instructions on how to appeal here. The instructions are also attached to the decision.

YEL income is adjusted annually using a wage coefficient

By law, YEL income is adjusted using a wage coefficient every year on the first of January. The objective of the adjustment is to keep an entrepreneur’s YEL income in line with the general payroll and price development. The Ministry of Social Affairs and Health confirms the wage coefficient annually by the end of October.

In future, YEL income will be reviewed every three years

The law obligates pension insurance companies to review the YEL income of self-employed persons regularly, every three years. The objective of this change is for YEL income to better reflect the value of the self-employed person’s work input also as their self-employed activities continue.

Read more about the YEL income reviews

We will review your income level during the calendar year in which three years have passed since the last time your YEL income was confirmed. For example, YEL incomes for insurance policies that started in 2022 will mainly be reviewed in 2025.

We will review YEL incomes of the YEL insurance policies that began before 1 January 2023 as follows:

  • in 2023, we will review YEL incomes under EUR 15,000
  • in 2024, we will review YEL incomes between EUR 15,000–25,000
  • in 2025, we will review YEL incomes over EUR 25,000

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