A self-employed individual is insured under the Self-Employed Persons’ Pension Act (YEL) in Finland, and work is performed either as an employee or an entrepreneur. Social security legislation does not specifically recognize self-employed individuals as a distinct group. However, the term ”self-employed entrepreneurship” has become established in common language when referring to individuals who employ themselves. All entrepreneurs, self-employed individuals, and light entrepreneurs are insured under YEL.
Basic Information About YEL Insurance for Light Entrepreneurs:
- Mandatory Insurance: All self-employed individuals aged 18–70 must insure themselves under YEL if their activities last at least 4 months and their annual YEL income (value of work contribution) is at least €9,208.43 (in 2025).
- Irregular But Recurrent Work: Irregular but recurring entrepreneurial activities are treated as seasonal entrepreneurship and may require YEL insurance.
- Foundation of Social Security: YEL forms the basis of an entrepreneur’s social security. A valid YEL insurance policy allows entrepreneurs to obtain accident insurance.
- Benefits Based on YEL Income: YEL income determines sickness and parental benefits, as well as unemployment benefits.
- Unemployment Fund Membership: Entrepreneurs can join the unemployment fund for entrepreneurs if their YEL income is at least €15,128 (in 2025).
- Startup Discount: A new entrepreneur receives a 22% discount on insurance premiums! If starting your first business, you can benefit from a 22% discount on YEL premiums for the first four years. The discount period begins when you take out YEL insurance for the first time.
- Tax Deductions: YEL insurance premiums can be fully deducted in either personal or company taxes.
- Insurance Premiums by Age: Your YEL premium amount is calculated based on your YEL income. The percentage depends on your age:
- Under 53 or over 62: 24.1% of YEL income.
- Aged 53–62: 25.6% of YEL income.
- Aged 63–69: 24.1% of YEL income.
- Determining YEL Income: As an entrepreneur, you estimate your work contribution’s monetary value, but the pension insurance company confirms your YEL income. Your income should correspond to the annual salary paid for the same work to another equally skilled individual. YEL income is not limited to your company’s profit or the salary you withdraw as an entrepreneur.
When defining your YEL income, you should also consider the number of hours you work, your company’s turnover, and any seasonal fluctuations in your activities.
Further Information:
For more details on YEL insurance, contact Elo’s customer service at 020 694 730 (weekdays 8:00 AM–4:30 PM) or visit www.elo.fi.
The experts at Arvotyö Oy are happy to assist in arranging YEL insurance and determining YEL income.
Download YEL insurance application
