As self-employed you are responsible for organising your pension cover by taking out statutory YEL insurance. You must have YEL insurance if you are self-employed or a light entrepreneur for at least four months and the estimated value of your work input is at least EUR 8,575.45 per year (in 2023).
Read more about when you need YEL insurance
YEL insurance is based on YEL income. It is an estimate of the monetary value of your work input on an annual level. Your YEL income should equal the salary that would be paid to an employee with the same professional skills as you have for carrying out the same work.
Read more about how the confirmed income should be determined
The YEL insurance contribution is calculated as a percentage of your YEL income. The YEL contribution percentage for 2023 is 24.10% for all persons aged 18–52 and for those over 63 years of age. The contribution percentage for those between 53 and 62 is 25.60%. If you are newly self-employed, we will automatically give you a 22% discount on your insurance contributions for the first four years.
Read more about YEL contributions
Besides pension, the YEL income determines your social security while your are working as self-employed. If you have a child and take parental leave, Kela will calculate your parental allowance based on your YEL income. If you fall ill, also Kela’s sickness allowance will be calculated based on the YEL income. When your YEL income is at least EUR 14,088 per year (2023), you can join an unemployment fund for the self-employed.
Change your confirmed income in Varma Online Service