Terminating YEL insurance

A longer break from work may arise, for example, if you take parental leave, leave for military service, or begin full-time studies. Sometimes work may be interrupted due to a long period of sick leave.

The insurance may be terminated if the break in your work lasts approximately four months. When you resume working, take out new YEL insurance starting from the day when you begin working again.

Take out YEL insurance

Sometimes, the work does not end entirely, but decreases to the extent that your work input falls below the limit of YEL income (€9,010.28 in 2024). In this case YEL insurance's termination date will be the date when the work has decreased to below the minimum level. Take note, however, that your taxable income as self-employed, withdrawn salary, or unwithdrawn salary alone do not mean that your YEL income would be below the minimum level.

You are responsible for reporting any longer-term changes that occur in your work input. Inform us of changes in, for example, your turnover and working hours.

Read more about YEL income

If there is no certainty that your activities will continue, your insurance can be terminated. The clear ending of your activities is indicated, for example, by the selling of your equipment and fixtures or the termination of the lease agreement for your business premises. If your self-employment continues later on, you can take out new insurance.

Take out YEL insurance

The insurance should also be terminated if you sell your company’s shares and your holding in the company falls to 30 per cent or less. If you continue working in the company, the company must insure you under TyEL.

Read more about YEL insurance in different forms of company

When you retire on old-age pension, your YEL insurance ends automatically on the day before the start of your retirement. This information will be included in your old-age pension decision. In this type of situation, you need not separately terminate your YEL insurance.

If you stop working before you retire on old-age pension, inform Varma about it before applying for pension. If you continue your self-employment while drawing old-age pension, you can take out voluntary YEL insurance.

Read more about applying for old-age pension

YEL insurance is personal, and one policy covers all of your self-employment. You only need one YEL insurance policy, even if you have more than one company. If you stop working in one company, but continue working in another one of your companies, your YEL insurance will not be terminated.

YEL insurance should also not be terminated if your work is interrupted for a brief period of time, e.g., for summer holidays or a short-term illness. Even though your YEL insurance is not terminated due to an illness, you may still be entitled to daily sickness allowance from Kela.

Read more about the daily sickness allowance for the self-employed on Kela’s website

If you stop withdrawing a salary from your company or you withdraw less salary, that is not grounds for terminating your YEL insurance. Your obligation to insure is determined by the value of your work input. Your taxable income or the amount of your company’s profit/loss are not the only grounds for terminating the insurance.

Read more about YEL income

Self-employment that is seasonal and continues from one year to the next is considered to be continuous even if the activities cease for several months during the calendar year. For example, running a kiosk during the summer can be viewed as being continuous.

If you know that your self-employment will continue, your YEL insurance must be in force throughout the year, even if you work as self-employed for only part of the year. Take the seasonal nature of your business into account when setting the level of your income. It is also often a good idea to have the insurance contribution due dates coincide with the months when you work.