YEL Insurance in Finland: What Every Small Business Owner Must Know

By the law (Self-Employed Person's Pensions Act), you are obligated to take out YEL insurance if certain criteria are met.

You must take out YEL if:

• You’re 18–69 years old

• Your business runs at least 4 months

• Your annual YEL income is over €9,208 (2025)
  
  

Note that even if you’re self-employed part-time, if your income crosses the limit, you need YEL.

Why Is YEL Important?

YEL is more than "just" a pension, among other, it is important for:

• Pension accrual every year

• Sickness & parental benefits (Kela uses your YEL income to calculate)

• Unemployment protection (if your YEL income is €15,128+ in 2025 and you join the Entrepreneur Fund)

How Much Does YEL Cost?

• Based on your YEL income (your estimate of annual work value, not turnover).

• 2025 contribution rates:

  • 24.10% if aged 18–52 or 63–69

  • 25.60% if aged 53–62

• Discount: New entrepreneurs get 22% off for the first 4 years.

• Tax deductible—you can deduct from your personal or business taxes.

• Flexible: pay in 1–12 instalments, and you can raise/lower temporarily if needed.

When to Apply?

• Within 6 months of starting your business (coverage is retroactive).

• If you delay, you may pay penalties.

• Apply online with Varma (or another pension provider).
  
  

Keep It Updated

Your YEL income should reflect your real workload. If your business grows, update it—this affects your pension and benefits.

Don't underestimate the importance of YEL insurance. It’s mandatory, protects your future, and supports you through sickness, family leave, or unemployment. Apply early, set the right YEL income, and you’ll have a strong safety net while building your business.

Insurance providers have YEL calculator on their website to estimate the size of your insurance contributions.
Find Varma's YEL-insurance calculator here: YEL calculator.