Everything about the YEL system (Yrittäjän eläkelaki): contributions, YEL income, kansaneläke, takuueläke and optimisation for yrittäjät.
In Finland, self-employed workers (yrittäjät) rely on a single system: YEL insurance, coordinated by ETK (Eläketurvakeskus).
YEL (Yrittäjän eläkelaki) is mandatory for all self-employed persons whose annual income exceeds €9,010.28. Insurance is taken out with a pension company (Varma, Ilmarinen, Elo, etc.). The contribution rate is approximately 24.1% for those under 53 and 25.6% for those aged 53-62 (2024).
YEL income is self-assessed and should correspond to the salary a similarly skilled employee would earn. Minimum: ~€9,010/year, maximum: ~€194,750/year. It forms the basis for all social security benefits.
Warning: many Finnish self-employed declare too low a YEL income, resulting in a very low pension. ETK recommends declaring a realistic income.
The kansaneläke is a residence-based pension paid by Kela. It supplements the work pension when it is low (below ~€1,512/month). Amount: approximately €732/month for a single person (2024).
The takuueläke guarantees a minimum floor of ~€922/month (2024). If your total pensions (YEL + kansaneläke) fall below this threshold, the difference is covered.
New self-employed workers receive a 22% discount on YEL contributions for the first 48 months. An important start-up aid, but note: reduced contributions also mean reduced entitlements.
Do not underestimate your YEL income. A low income means a low pension, fewer sickness allowances and a reduced safety net.
Supplement YEL with voluntary pension savings (vapaaehtoinen eläkevakuutus) or investments to secure your future.
Review your pension statement on the Työeläke.fi online service to ensure your entitlements are up to date and adjust if needed.
The 22% new entrepreneur discount is automatic but limited to 48 months. Plan your transition to the normal rate.
Our financial analysis tools help you optimise your contributions and plan your self-employed retirement across Europe.
Discover our solutionsYes, YEL insurance is mandatory for all self-employed persons (yrittäjä) aged 18-68 whose estimated annual income exceeds €9,010.28 (2024). It must be taken out within 6 months of starting the business.
The rate is approximately 24.1% of confirmed YEL income for those under 53, and approximately 25.6% for those aged 53-62. New entrepreneurs receive a 22% discount for the first 48 months.
YEL income is a self-assessed amount that should correspond to the salary a similarly skilled employee would earn for the same work. It determines both contribution amounts AND benefit levels (pension, sickness allowance, etc.).
The takuueläke (guarantee pension) ensures a minimum of ~€922/month (2024). If your total pensions remain below this, Kela covers the difference. The kansaneläke (national pension) is approximately €732/month for a single person.
Yes, new self-employed workers automatically receive a 22% discount on YEL contributions for the first 48 months. However, note that reduced contributions also mean proportionally reduced social benefits (pension, sickness allowance).
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