When are you obligated to take out YEL insurance?
By law (Self-Employed Person's Pensions Act), you are obligated to take out YEL insurance if
- you are at least 18 years old,
- you work in your own company or as a light entrepreneur,
- your self-employed activities continue for a minimum of four months, and
- your confirmed income, i.e. the value of your work input, is at least EUR 8,575.45 (in 2023).
The general rule is that you need YEL insurance if you are self-employed. YEL insurance begins on the day when you start working in your company to the extent that the obligation to insure is met, that is when your YEL income is approximately EUR 715 per month (2023). Usually, YEL insurance begins on the day you start working. You have six months to take out the insurance.
The YEL insurance obligation and your insurance contributions are based on your confirmed income under YEL, i.e. on the monetary value of your work input.
You can only have one valid YEL insurance policy, as one policy covers all of your work as self-employed. If you employ yourself in more than one company, your YEL income is estimated as the total monetary value of your work input in all of your companies.
The insurance starts at the beginning of the calendar month following your 18th birthday. The upper age limit for YEL insurance depends on your birth year:
- for those born in 1957 or earlier it is 68 years,
- for those born in 1958-1961 it is 69 years and
- for those born in 1962 or later it is 70 years
If you continue your self-employment while simultaneously drawing old-age pension, YEL insurance is voluntary.