We help you to calculate your YEL income, which determines your social security and pension

article Transcript

Hi, I’m Varma’s YEL interpreter. This video explains one of the key concepts of the Finnish self-employed persons’ pensions system YEL, namely YEL income.

[on screen] YEL income

YEL income refers to an estimate of the monetary value of a self-employed person’s work input over a period of 12 months.

[on screen] YEL income = your work’s value in euros over 12 months

It is not the amount of profit that your business makes, your taxable income or the salary that you pay yourself.

[on screen] business profit

[on screen] taxable income

[on screen] your salary

Your YEL income is the annual salary that you would have to pay to an employee with the same professional skills as you have for doing the same work. In other words, you need to think about how much you would have to pay someone else to do your work.

[on screen] How much would you pay someone else to do your work?

This can be difficult to estimate, which is why Varma’s website features a helpful YEL income calculator to give you an indication based on your estimated turnover and your industry.

[visual description] The animation shows an example of using Varma’s YEL income calculator. A turnover estimate and a business sector are entered, and the calculator gives a YEL income recommendation.

If the monetary value of your work input exceeds the YEL income threshold of EUR 9,423.09, you are legally required to take out YEL insurance.

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

And remember: You can join an unemployment fund for self-employed people if your YEL income exceeds the YEL income threshold for unemployment security of EUR 15,481. Joining an unemployment fund is a good investment because membership qualifies you for an earnings-related unemployment allowance.

[on screen] YEL income threshold for unemployment security: EUR 15,481

However, the YEL system is due to be revised at the beginning of 2028, so keep an eye on Varma’s channels to stay up to date with the latest developments.

Also keep in mind that you can always go back and review your YEL income. Recalculating your YEL income is worth doing if there is a long-term change in your circumstances – such as if you grow your business, if your turnover goes up or down or if you start working longer or shorter hours.

[on screen] You can review your YEL income

Having your YEL income reflect your actual circumstances is important because it also affects the scope of your social security and the amount of your future pension. How? I have a separate video about that, too, which I recommend you watch.

An easy way to get YEL insurance is to visit varma.fi.

[on screen] varma.fi