Entrepreneur’s Pension Insurance Made Simple

As an entrepreneur or light entrepreneur, you don’t automatically have the same pension coverage as regular employees.
That’s why Finland has YEL, the Entrepreneur’s Pension Insurance — a system that secures your future pension and also determines your eligibility for social benefits like sick leave, parental allowance, and unemployment support.

When YEL Insurance Is Mandatory

You are required to take out YEL insurance if all of the following apply:

• You are between 18 and 68 years old (the upper age limit has changed for those born in 1958 or later)

• You work as an entrepreneur or light entrepreneur for at least 4 months per year

• Your estimated annual work income is at least €9,423.09 per year (in 2026)

If you invoice through Palkkaguru and meet these criteria, YEL is worth arranging early, and we can help you assess your needs and set it up easily online.

How Much Does YEL Cost in 2026?

New for 2026: The contribution percentage is now the same for all entrepreneurs, regardless of age.

• Standard Rate: 24.40% of your confirmed YEL income.

• New Entrepreneurs: You get a 22% discount for the first four years, making your contribution approximately 19.03%.

Example: If your annual YEL income is set at €20,000:

• Standard contribution: ~€406 per month.

• New entrepreneur discount: ~€317 per month.

Contribution Percentage (2026)

Starting January 1, 2026, the standard YEL contribution will be 24.4% for everyone.

• If you are under 53 or over 62: Your rate increases slightly from 24.1% to 24.4%.

• If you are 53–62: Your rate decreases from 25.6% to 24.4%.

• New Entrepreneurs: The 22% discount for the first 4 years remains. Your rate will be approximately 19.03%.

New Income Limits (2026)

The income thresholds have been adjusted upward for inflation (Wage Coefficient 1.712):

• Minimum YEL Income: €9,423.09 / year

  • (You must take YEL insurance if your work input value exceeds this)

• Unemployment Security Threshold: €15,481.00 / year

  • (You must earn at least this much to qualify for Kela's basic unemployment allowance or to join an unemployment fund)

• Maximum YEL Income: €214,000.00 / year

Other Changes

• Interest Rate: The interest rate used for YEL contributions will change to 2.20% (previously 2.65% in early 2025).

• Age Limit: The upper age limit for mandatory YEL insurance is changing. For those born in 1958 or later, the obligation to insure continues even after turning 68.

Why YEL Matters

Your YEL contribution affects far more than just your pension:

• Sick pay – calculated based on your YEL income

• Parental allowance – higher YEL income means better daily allowance

• Unemployment security – To qualify for the unemployment fund, your YEL income must be at least €15,481.00 per year (in 2026).

• Pension – every euro you contribute builds your future pension

In short: the more accurate your YEL income, the better your social security coverage.

How to Estimate the Right YEL Income

A simple rule of thumb: Your YEL income should equal the salary you would pay someone else to do your job.

If you set it too low (e.g., at the minimum of €9,423), your social security benefits will remain very low. If you’re unsure, Palkkaguru can help you estimate the right amount and calculate your monthly payments automatically.

Frequently Asked Questions

Do light entrepreneurs need YEL insurance?
Yes, if your annual work income exceeds €9,423.09 and you work independently, not as an employee.

How can I calculate my YEL payments?
You can use our calculator or ask our team for a personalized estimate based on the 2026 rates..

Can I pay YEL retroactively?
Yes, but it may affect your social benefits, so it’s best to handle it proactively.

Is YEL included in Palkkaguru’s service fee?
No, YEL is a separate statutory payment. However, Palkkaguru helps you handle the paperwork and payments quickly and easily..

Ask an Expert

Not sure if YEL applies to you?
Book a free consultation and we’ll review your case together.

Start Securely with Palkkaguru

Start your business safely and let’s handle your YEL together.
Join Palkkaguru and we’ll help you set up your YEL insurance and income estimate.