YEL

YEL (Yrittäjän eläkevakuutus) is statutory pension insurance for entrepreneurs who live in Finland. You must take it out when all of these apply: you work as an entrepreneur continuously for more than four months; you are within the age limits (from age 18; the upper age limit depends on your year of birth, generally 68–70); and your confirmed YEL income (työtulo) is at least 9,423.09 euros per year in 2026.

Työtulo is the pension company’s confirmed estimate of the value of your work. It is not turnover and not the sum you withdraw. In 2026 the range is 9,423.09–214,000 euros. The contribution is 24.40% of työtulo for every age group. A first-time entrepreneur is entitled to a 22% discount on the contribution for 48 months.

Take out the insurance within six months of becoming obliged. A delay can lead to an increased fee. The companies that sell YEL are Elo, Ilmarinen, Varma and Veritas.

Who is covered depends on the company form. A Toiminimi trader who works in the business is covered. So is a partner in an Avoin yhtiö and a general partner in a Kommandiittiyhtiö. In an Osakeyhtiö, YEL applies if you work in a leading position and the ownership limits above are met. A Kevytyrittäjä using a billing service is often covered as well, even without a Y-tunnus.

Kela uses YEL income when it calculates sickness allowance, parental allowances and some other benefits. Entrepreneur unemployment cover has a higher income limit: 15,481 euros in 2026. See Yrittäjän työttömyysturva.

Practical advice

Confirm the current lower limit and contribution rate on tyoelake.fi before you sign. Figures change at the turn of the year.

Ask the pension company to confirm työtulo in writing. Raise it if your work grows. The minimum figure is meant mainly for part-time work.

Where to seek advice

The best place to start is Finnish Centre for Pensions (Eläketurvakeskus) at tyoelake.fi: https://www.tyoelake.fi/en/self-employed-persons-pension/

This is the official explanation of who must take YEL and how työtulo is set. To take out the policy, contact one of the pension companies (Elo, Ilmarinen, Varma or Veritas). They will calculate the contribution. For how YEL affects Kela benefits, use https://www.kela.fi/yrittajyys-sosiaaliturva

All the necessary links

tyoelake.fi — Who needs YEL and the current income limits.
Elo, Ilmarinen, Varma, Veritas — Application and payment.
kela.fi/yrittajyys-sosiaaliturva — Daily allowances based on YEL income.
yrittajakassa.fi — Earnings-related unemployment fund for entrepreneurs.