Price of YEL insurance

The price of YEL insurance depends on your confirmed YEL income. If you are newly self-employed, you get a 22% discount on your YEL insurance contributions for the first four years. Your YEL contributions are fully tax-deductible.

What determines the price of YEL insurance?

The price of YEL insurance is calculated on the basis of your YEL income. For your own pension and other social security benefits, it is important that your YEL income is at the correct level right from the start.

The price of your YEL insurance depends on your YEL income. Test out our Calculator for the self-employed to estimate the impact of your YEL income on your social security and pension accrual, and on your insurance contributions.

The Ministry of Social Affairs and Health confirms the contribution percentages annually. In 2023, the contribution percentages are

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

See the table where we have gathered social security contributions and limits

Four-year discount when you are just starting your self-employment

When you start your self-employment, you get a discount of 22% for a period of four years (48 months). The discount can be applied for no more than two separate periods. If you are taking out YEL insurance for the first time and it is valid initially, say, for 10 months, you still have 38 months of the discount left. You can use it if you take out YEL insurance again in the future.

Are YEL insurance contributions tax deductible?

YEL contributions are fully tax deductible! If you pay your YEL contributions yourself, you can deduct them in your personal taxation. If, however, your company pays your YEL contributions, the contributions are to be deducted in your company’s taxation. Follow the tax authority’s instructions on filing a tax return.

View your YEL contributions in Varma Online Service

We notify the tax authority of the YEL incomes of our YEL insured parties annually. We do not notify the tax authority of the YEL insurance contributions.

When do YEL insurance contributions fall due?

The YEL contribution falls due on the 20th day of the month or on the following banking day. You can choose 1, 2, 3, 4, 6 or 12 instalments per year. The payment arrangements can be changed during the year, as long as half of the contributions fall due before August. You can change the instalments easily in our online service: YEL insurance > Insurance policy information > Edit instalments.

Try out our handy calculator for the self-employed! It will help you determine YEL instalments that suit you best.

Try out the YEL calculator

Varma's own collection advisors are here to help

If necessary, you can request an extended term of payment through our online service: YEL insurance > Invoices > Apply for extended term of payment for your invoices. The term of payment is subject to interest for late payment (10.5% in 2023). Varma’s collection advisors will work with you to find the best solution for your payment situation. Don’t hesitate to contact us! We charge a EUR 40 collection fee for sending a payment reminder.

YEL invoices electronically

If your company pays your YEL insurance contributions and uses electronic invoicing, you can give us of your e-invoicing address and operator in Varma Online service: YEL insurance > Insurance policy information > Invoice recipient > Edit.

Submit your e-invoice address in Varma Online Service

If you pay your YEL insurance contributions yourself, you can activate an e-invoice agreement for them in your personal online bank. The bank will automatically send us information about the e-invoice agreement.

If you would like to receive YEL invoices by email, provide your email address to which you want invoices to be sent in the Varma Online Service: YEL insurance > Insurance policy information > Invoice recipient > Edit.

Provide the email address for YEL invoices

You can adjust your YEL contributions to flexibly adapt to your financial situation. When times are good, you can improve your pension cover by making additional contributions. You can also temporarily lower your contributions. The flexibility option always applies to one calendar year at a time, and you may adjust your contributions once within a calendar year.

The YEL contribution is calculated on the basis of your YEL income, and your YEL income must correspond to the value of your contribution. However, you can adjust the YEL contribution up or down depending on your financial situation. When times are good, you can improve your own pension accumulation by paying additional contributions. In weaker times, you can lower your YEL contribution without reducing your other social security benefits.

Pay additional YEL contributions or lower your YEL contributions

You can pay 10–100 per cent higher contributions. We will send you a separate invoice for the higher contribution and it must be paid during the year of flexibility. If you pay additional contributions, the combined total of your insurance contributions cannot exceed the contribution calculated for the upper limit of YEL income (EUR 194,750 in 2023). If you wish to make additional contributions, you can do so every year, for instance. Additional contributions are tax deductible, just like other YEL contributions.

You can pay 10–20 per cent lower insurance contributions. If you lower your contributions, the combined total of your insurance contributions cannot be lower than the contribution calculated for the lower limit of YEL income (EUR 8,575.45 in 2023). You can reduce your contributions for a maximum of three years within seven consecutive calendar years.

Apply for payment flexibility through Varma Online Service

Send us a written notice when you want to use the flexibility option. The easiest way to apply for payment flexibility is to send us a message in Varma Online Service. Be sure to submit the notice in good time, as the application must be processed and the additional contributions must be paid during the year of flexibility. Your notice must indicate which flexibility option you are requesting, and the amount either as a percentage or a euro amount.

You can flexibly adjust your YEL contributions if

your insurance is valid for the full year of flexibility,
your insurance is valid for the full calendar year with the same pension insurance company,
you do not have overdue, unpaid YEL contributions,
you do not receive the discount for the newly self-employed and
you do not yet receive earnings-related pension from Finland (including part-time pension and partial old-age pension).

The flexibility will be cancelled if it is later discovered that you were not, in fact, eligible for it due to changes made to the insurance policy. The flexibility will be cancelled, for example, if your YEL income is changed or if the insurance ends during the year of opting for flexibility. If the flexibility is cancelled, the insurance contributions will be re-calculated according to your confirmed YEL income.

The YEL contribution flexibility option only affects your pension. It does not affect, e.g., the level of daily allowance under the Finnish Health Insurance Act or unemployment security.

If significant changes take place in your self-employment, you should apply for a change in your YEL income rather than use the flexibility option because YEL income must reflect your work input and operating conditions.

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

Using the flexibility option will affect the amount of your total YEL income for that year. By lowering your contributions, your total YEL income will also be lower and, correspondingly, additional contributions will raise your total YEL income. Your total YEL income is used as the basis for calculating your pension accrual for that year.

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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