Let's make sure that you have the right level of social security and pension

article Transcript

Hi, I’m Varma’s YEL interpreter. This video explains the impact of YEL insurance on your social security if you are self-employed in Finland.

[on screen] Social security

Even self-employed people can become unemployed. You can also fall ill. Your family may grow. And eventually you will retire. YEL is an insurance policy that covers all of the above.

[on screen] Earnings-related unemployment benefits

[on screen] Sickness allowance

[on screen] Parental allowance

[on screen] Pension

How much of these you get depends on your YEL income. I have made a separate video about YEL income, which explains what it is.

[on screen] YEL income

Let me start by explaining how YEL protects you in the event of illness. The day on which you fall ill is your responsibility. Thereafter, you are entitled to a YEL allowance from Kela for up to nine working days. If you are still ill after that, you can claim a statutory sickness allowance.

[on screen] 1 day – Waiting period

[on screen] 9 days – YEL allowance

[on screen] Sickness allowance

Let’s look at unemployment security next. When you have YEL insurance, you can claim an earnings-related unemployment allowance if your YEL income exceeds the YEL income threshold for unemployment security and you are a member of The Entrepreneur Fund.

[on screen] Earnings-related unemployment security

[on screen] YEL income of at least EUR 15,481

[on screen] Membership of The Entrepreneur Fund

The third benefit is parental leave. If you have YEL insurance, you can claim a parental allowance from Kela. It covers pregnancy allowance, parental allowance and partial parental allowance.

[on screen] Parental allowance = pregnancy allowance, parental allowance, partial parental allowance

Let’s wrap up by talking about retirement. By paying YEL contributions you build up a pension, which secures your income in old age or if you lose your work ability . It also provides your family with financial security after you pass away.

[on screen] Pension

[on screen] Retirement or disability

[on screen] Security for your family

If you want to know how much of these various benefits you would get, there is a helpful calculator on Varma’s website that shows you the impact of your YEL income on your social security and pension.

[visual description] The animation shows an example of using Varma’s YEL calculator. A YEL income and a time of birth are entered, and the calculator shows estimates of the YEL contribution, social security and pension.

I hope this helps you to understand just how useful statutory YEL insurance actually is.

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

[on screen] varma.fi