YEL obligation

Self-employed persons who operate as sole traders are required to have YEL insurance. A spouse who works in the company is also required to have YEL insurance regardless of whether they are paid or not.

If another member of your family works in your company without pay, this person must also take out YEL insurance for themself. However, if this person is paid a salary, you must take out TyEL insurance for them.

Light entrepreneurs are considered entrepreneurs under the earnings-related pensions acts and require YEL insurance. Thus, if you employ yourself and invoice your customers through an invoicing service, you fall within the scope of YEL insurance.

Read more about YEL insurance for light entrepreneurs

You need a YEL insurance if you work in a limited company, are in a leading position and own more than 30% or, together with your family members, more than 50% of the company’s shares or the votes they confer. If the ownership share is less than that, you are insured under TyEL insurance.

A partner who is not in a leading position but works in the company and is paid a salary falls within the scope of TyEL insurance. Also, a partner’s family member who works in the company and is paid but does not own any part of the company is insured under TyEL insurance.

Leading positions are considered to include:

• the Chief Executive Officer (CEO)
• a member of the board of directors
• an administrative or division head
• a person who, due to his or her position, has equivalent factual control
• a person who owns all shares in the company or exercises corresponding de facto right of control in the company
• a person who works in the company and who de facto decides on the company's operations even if he or she does not formally have a leading position in the company

A partner in a general partnership needs YEL insurance. A partner’s family member who works in the company and is paid a salary is insured under TyEL insurance. If the family member is not paid, they don't need either YEL or TyEL insurance, because they are not required to be insured under the earnings-related pensions acts.

Active partners in a limited partnership are insured under YEL insurance.

A limited partner who works in the company and is paid, is insured under TyEL. However, if they work without getting paid, no pension insurance is needed.

A partner’s family members who are not partners themselves but who work in the company and are paid are insured under TyEL. However, if they work without getting paid, they do not need to be insured.

You need YEL insurance if you are in a leading position and your controlling right alone is more than 30% or, together with your family members, more than 50%. A partner who works in the company and is personally responsible for the company’s commitments must also have YEL insurance.

A family member of a partner is insured under TyEL if they work in the company and are paid salary. Unpaid family members are not insured.

Partners who work in the company and are paid a salary but who have a controlling right of less than 30% and are not personally responsible for the company’s commitments are covered by TyEL insurance. If they work without pay, they don't need to be insured.

In applying the earnings related pensions acts, a family member is considered to be

• a marital spouse or a partner in a registered partnership, regardless of whether this person lives in the same household as the self-employed person
• a common-law spouse living in the same household as the self-employed person

Following persons are also considered to be family members if they live in the same household as the self-employed person or their spouse who is in a leading position in the company:

• child or grandchild
• parent or grandparent
• adopted child or adoptive parent

A child living separately in their own household is not considered to be a family member when applying the earnings-related pensions acts. Siblings, uncles and aunts are also not considered to be family members, even if they live in the same household as the self-employed person.

If you are on an old-age pension, you can work as a self-employed person without YEL insurance.

If you wish, you can take out voluntary YEL insurance alongside your pension, which will accrue an additional pension from your self-employed activities. Voluntary YEL insurance accrues 1.5% more pension per year.

Apply for voluntary YEL insurance online.

The earliest you can claim a pension that has been accrued alongside your pension is at your maximum retirement age. The maximum retirement age depends on your year of birth.

The upper age limit is:

• 68 years for persons born in 1957 or earlier,
• 69 years for persons born between 1958 and 1961, and
• 70 years for persons born in 1962 or later.

See our website for instructions on how to claim the pension you have accrued from self-employment during your retirement.

If you are on a partial old-age pension and are self-employed, you need YEL insurance if your YEL income exceeds the lower limit for insurance obligation (EUR 9,010.28 in 2024).

If your YEL income changes when you transition to a partial old-age pension, apply for a change in your YEL income in Varma Online Service. You can find the application under YEL insurance > Insurance policy information > Apply for a change in your YEL income.

Log in to Varma Online Service

If you are under 63, you will accrue 1.7% pension per year from self-employment during your partial old-age pension. If you are over 63, you will accrue 1.5% pension per year. The earliest you can claim your accrued pension during your partial old-age pension is at the minimum retirement age.

See our website for instructions on how to claim the pension you have accrued from self-employment during your retirement.

If you are on a disability pension, partial disability pension, cash rehabilitation benefit or partial cash rehabilitation benefit and are self-employed, you need YEL insurance if your YEL income exceeds the lower limit for insurance obligation (EUR 9,010.28 in 2024).

Your YEL income can be no higher than the earnings limit indicated in your pension decision (your monthly earnings limit multiplied by 12).

However, your YEL income can be at least EUR 976.59 per month, or EUR 11,719.08 per year (2024), without affecting your pension, even if your personal earnings limit is lower.

You will find your personal earnings limit in your pension decision and in Varma Online Service.

Log in to Varma Online Service

You will accrue 1.5% more pension per year from your self-employed activities on top of your pension. The earliest you can claim your pension accrued alongside your pension is at the minimum retirement age.

See our website for instructions on how to claim the pension you have accrued from self-employment during your retirement.

If you are on a years-of-service pension and are self-employed, you need YEL insurance if your YEL income exceeds the lower limit for insurance obligation (EUR 9,010.28 in 2024).

Your YEL income can be no higher than the earnings limit for the years-of-service pension (the monthly earnings limit multiplied by 12). The earnings limit for a years-of-service pension is EUR 976.59 per month, or EUR 11 719.08 per year (2024).

You will accrue 1.5% more pension per year from your self-employed activities on top of your pension. The earliest you can claim your pension accrued alongside your pension is at the lowest retirement age.

See our website for instructions on how to claim the pension you have accrued from self-employment during your retirement.