Determination of YEL income

YEL income refers to the monetary value of your work input. As a self-employed person, your pension accrual and other social security is calculated according to YEL income. You provide your own estimate of your YEL income in the YEL insurance application form, and we will confirm your YEL income to reflect the value of your work input. We offer an easy-to-use income calculator to help you determine the right level of YEL income for your business 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 should correspond to the annual salary you would have to pay for the same work to an employee as skilled as yourself.

Try our easy-to-use calculator to get a YEL income recommendation for your business sector – taking into account your turnover!

Try the YEL income calculator

You need YEL insurance if the value of your work input as an entrepreneur exceeds the lower limit for YEL income. The minimum YEL income is €8,261.71 and the upper limit is €187,625 in 2022. When your YEL income is at least €13,573 per year (2022), you can join the unemployment fund for entrepreneurs.

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.

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

Our new income calculator makes it easier to determine your YEL income! Enter your turnover and business sector, and you'll get a clear recommendation based on the average salary in your sector and your company's turnover. The calculator also shows a margin of +-30% for the income recommendation.

This is how to use the calculator

  1. Select your business sector from the menu. You can search for an industry by entering the industry name or industry code in the field.
  2. Enter an estimate of your turnover for the next 12 months in the calculator.
  3. See your recommended YEL income in the calculator and take out YEL insurance easily online! Enter the recommended YEL income in the application form.

    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.

What is the YEL income calculator?

The YEL income calculator helps the entrepreneur and the pension insurance company to determine the correct level of YEL income. The calculator takes into account the average salary of the employees in the entrepreneur's business sector and the company's turnover and calculates the correct recommendation for YEL income.

The calculator also gives a margin of +-30% for the recommendation. The calculator's recommendation can be deviated from, for example, because of part-time entrepreneurial activities.

When determining YEL income, pension insurance companies follow the common application recommendations of the Finnish Centre for Pensions (ETK). This new calculator replaces the previous ETK sector-specific guides on YEL income. The calculator unifies the definition and guidance on YEL income. It also provides guidance on YEL income for the sectors for which there has been no guidance before. The calculator is based on statistical data provided and maintained by the ETK.

The calculator provides a uniform basis for the estimation of YEL income for both the pension insurance companies and the entrepreneurs themselves. The purpose of the YEL calculator is to ensure that the entrepreneur has proper pension and other social security cover.

Please note that the calculator is a tool to help you determine your YEL income, and it does not take into account all different situations. When you apply for YEL insurance or for a change to your current YEL income, you can apply for YEL income other than the calculator's recommendation if you feel that other factors related to the scope of your activity or your skills should be taken into account when determining your YEL income.

How is YEL income determined?

You give us your own estimate of the value of your contribution, i.e. your income from work, in your YEL insurance application. From your application, we will confirm your earned income on a case-by-case basis, taking into account your own estimate and the recommended income according to the guidelines of the Finnish Centre for Pensions. The determination will also take into account the number of your working hours, the turnover of your business and the possible seasonal nature of your business activities. YEL income does not mean the profit generated by your business or the salary you draw as a self-employed person.

We will confirm your YEL income so that it reflects the value of your work input in order to ensure that your pension accrual and social security are based on a realistic earnings level for your sector. So if you fall ill, for example, you will be paid sickness allowance in line with your earnings.

The ETK's recommendations on YEL income are intended specifically for the income of an already established entrepreneur. A newly self-employed person’s YEL income may be lower than the amount indicated in the guide, if there are fewer customers or less work in the beginning. However, the so-called minimum YEL income (€8,261.71 at the 2022 level) is only meant to be a part-time entrepreneur’s YEL income. Apply for a change in your YEL income when, for example, after starting your business, your clientele is well-established and your turnover has increased or when you switch from part-time to full-time self-employment. You can apply for a change in your YEL income as often as you need to, but not retroactively.

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. If your work input, turnover or working hours change, you must apply for a change in your YEL income partway through the year. Remember that the YEL income can be changed with effect from the date on which the application is made at the earliest, in other words, YEL income cannot be changed retroactively.

An entrepreneur’s YEL insurance is in force from 1 April to 31 December. The YEL income of an entrepreneur is confirmed as EUR 24 000. However, the insurance contributions and pension accrual are calculated on the basis of the annual income only for the period of validity of the insurance, in this case for 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. For example, let us know when your turnover, working hours or industry changes. So apply for a change in your income, for example when you move from part-time to full-time self-employment or vice versa.

You can apply for a change to your YEL income as often as necessary, but not retroactively. Apply for a change in YEL income in Varma Online Service. The earliest you can change your YEL income is from the date of receipt of your application, i.e. you cannot change your YEL income retroactively.

You can easily apply for a change to your YEL income in Varma Online Service. Go to to Insurance > Insurance policy information > Apply for a change in your YEL income, fill in the form carefully and send it to us. We will process your case and ask you for more information if necessary.

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

Once your case has been processed, you will receive a decision on the change in your YEL income. The decision is subject to appeal, which means you have 30 days to appeal against the decision you receive. You can find instructions on how to appeal here. The instructions are also attached to the decision.

When is the YEL income changed?

It is in your best interests to keep your YEL insurance up to date. You are responsible for reporting any longer-term changes that occur in your work input. If you work more than before, apply for a change in your YEL income. Apply for a change in your YEL income also if you work less due to, for example, studies or family reasons.

Keep in mind that your YEL income is not the salary you pay yourself, but the monetary value of your work input in one year. Receiving larger social benefits or a virus epidemic, for example, are not grounds for changing one’s income level.

YEL income is adjusted yearly with the wage coefficient

YEL income is adjusted by law with the wage coefficient yearly on the first day of January. The objective of the adjustment is to keep your YEL income up with the general development of wages and prices. The Ministry of Social Affairs and Health confirms the wage coefficient yearly by the end of October.

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