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 67 years old

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

• Your estimated annual work income is at least €9,010 per year (in 2025)

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?

YEL contributions are based on your work income (not your total invoicing). This is the amount that would reasonably represent your own salary if you hired someone else to do your work.

In 2025, the average contribution rate is:

• 24.10% for entrepreneurs under 53

• 25.60% for entrepreneurs aged 53–62

Example:
If your annual YEL income is €20,000, your monthly contribution is around €402.
As a new entrepreneur, you’ll get a 22% discount for the first four years, making it about €314 per month.

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 – YEL is required to be eligible

• 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, your benefits will also be 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 €9,010 and you work independently, not as an employee.

How can I calculate my YEL payments?
You’ll soon be able to use our YEL calculator or ask our team for a personalized estimate.

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, but we’ll help you handle it 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 – let’s handle your YEL together.
Join Palkkaguru and we’ll help you set up your YEL insurance and income estimate.