Can you shop around for YEL insurance?
Self-employed persons' pension insurance (YEL) contributions are the same across all pension insurance companies. This means that the insurance contribution percentage does not change depending on which company you choose as your partner. The amount of the contribution is only affected by the estimate of the value of your work input, i.e. your YEL income. When the YEL income is the same, the price of the insurance is also the same regardless of the pension company.
You can estimate the amount of YEL contributions using our YEL calculator
You can estimate the right level of YEL income by considering how much salary you would pay annually to a similarly skilled person who would do your job for you. To support this assessment, the pension sector has developed a joint YEL income calculator, which gives you a recommendation based on your industry and estimated turnover.
However, it is important to remember that the calculator's result is only indicative. Every self-employed person's situation is unique, and the right YEL income is often determined by discussing the matter together. Varma's experts are happy to help if anything is unclear or if you need assistance in determining the right level of YEL income for you.
Why is the cheapest YEL not a good idea?
YEL insurance contributions are determined on the basis of YEL income. The higher your YEL income, the higher your contributions, and the lower your YEL income, the lower your contributions. Many people may think that keeping their YEL income as low as possible is a way to “save money.” However, YEL income that is too low weakens your financial security both now and in the future, as YEL income forms the basis of a self-employed person's entire social security. In addition to your pension, it affects, for example, sickness and parental allowances as well as unemployment security. If your YEL income is too low, there is a risk that your livelihood will not be sufficient in these changing life situations.
It is also important to remember that your YEL income is not set in stone. It can and should be updated whenever there are changes in your business activities. This ensures that both your social security and future pension remain up to date and correspond to your actual work input. YEL insurance is the most important insurance for self-employed persons.
Read more about how YEL affects the life of a self-employed person
Can you get a discount on YEL insurance?
YEL insurance contributions are 22% cheaper for the newly self-employed for the first four years. We apply this so-called discount for the newly self-employed automatically if the conditions are met.
Read more about the discount for newly self-employed persons
The choice of instalment months and the number of instalments also affect the YEL contribution. The YEL contribution is cheapest if you pay it in a single instalment in January, because then it is subject to a so-called interest credit. For example, with a YEL income of EUR 35,000, the annual YEL contribution is approximately EUR 100 cheaper if you pay it in a single instalment in January instead of paying it once a month.
You can use the YEL calculator to plan which instalment months are suitable for you
Why it is a good idea to choose Varma as your pension insurer?
You will find in us a partner that is sure to be by your side and handles its duties responsibly. When it is time to hire your first employee, we offer you the most affordable employer’s pension insurance, i.e., TyEL insurance. We are the only earnings-related pension insurance company to offer new TyEL customers a discount for the first three years. In addition, we pay the highest client bonuses in the industry to all our TyEL clients every year, meaning we offer the biggest discounts on TyEL contributions thanks to our high solvency. This makes us the most affordable earnings-related pension partner at every stage of your entrepreneurship.
As our YEL customer, you get access to our Varma Online Service, where you can take care of your insurance matters quickly and easily whenever it suits you. If you have any questions, our friendly experts are always ready to help you via Varma Online Service, chat, or phone.
Learn more about Varma Online Service in this video
Throughout the year, we organise free webinars and events on current topics such as pension insurance, investing, and work ability management.
Take a look at our event calendar (in Finnish)
If you need support for your own work ability or that of your employees, you can use Varma Academy, our learning environment available in Varma Online Service. Varma Academy offers online courses, podcasts, and webinar recordings.
If you need a new insurance or want to transfer your insurance to Varma, you can easily take out insurance online. You can also reach our sales service Monday to Friday between 8:00 and 16:00 on 010 244 1010, or you can leave us a contact request and ask for a quote.
How to use our calculators
YEL income calculator
The YEL income calculator is a useful tool for determining YEL income. The calculator will give you a YEL income recommendation based on the average salary in your industry and your company's turnover. The result of the calculator is only a recommendation that can be used to make a tentative estimate of the level of YEL income. We will determine the correct level of YEL income together with the self-employed person.
Calculate your YEL income recommendation with the YEL income calculator
YEL calculator
With the YEL calculator, you can estimate how different levels of YEL income affect the amount of YEL contribution, your pension accrual, and your social security.
Join our satisfied self-employed customers
We'll support you through the changing and unexpected twists and turns in your life and business, whether it's illness, a new family member or the need for flexible payment arrangements. You can take care of your insurance matters online or contact our experts by phone, chat or online message.
As many as 44,000 entrepreneurs have already chosen Varma to take care of their pension cover! We offer new entrepreneurs a 22% discount on their YEL contribution for the first four years. If you already have YEL insurance elsewhere, we'll take care of the termination for you.