YEL is statutory insurance for self-employed people

article Transcript

Hi, I’m Varma’s YEL interpreter. My job is to make YEL – the Finnish self-employed persons’ pensions system – easier to understand. This video gives you the basics.

[on screen] YEL basics

Are you over 18 years old, are you running a business for at least 4 months and does the monetary value of your work input exceed the YEL income threshold of EUR 9,423.09 in 2026? If you answered ‘yes’, you are legally required to take out self-employed persons’ pension insurance in Finland.

[on screen] 18 years old or older

[on screen] In business for at least 4 months

[on screen] YEL income threshold: EUR 9,423.09

Having YEL insurance is genuinely important because it gives you security in many ways. Firstly, it provides the basis for your social security, including your sick pay, parental allowance and earnings-related unemployment benefits. Secondly, when you pay YEL contributions, you gradually build up a pension.

[on screen] Social security

[on screen] Sickness allowance

[on screen] Parental allowance

[on screen] Earnings-related unemployment benefits

[on screen] You build up a pension

YEL is a statutory system, which means that YEL insurance costs the same regardless of the provider. The amount of your YEL contributions is calculated as a percentage of your YEL income. If you are just starting out in business, you automatically get a 22 per cent discount for the first 4 years.

[on screen] 24.40% of YEL income

I almost forgot! The YEL income that I mentioned is a whole other story in itself and there is a separate video about that.

[on screen] YEL income?

I hope this helps you to understand what YEL is and why it is relevant to you.

I have made other videos, too, about YEL income and social security, which are also worth watching. An easy way to get YEL insurance is to visit varma.fi.

[on screen] varma.fi