Where to find the cheapest YEL – can you shop around for YEL insurance?

There is no difference in the contributions for the self-employed persons' pension insurance (YEL) depending on which pension insurance company you choose as your partner. The contribution rate is therefore the same for all companies. Instead, your contributions are affected by the value of your work input, i.e. your YEL income. For the same YEL income, the price of YEL insurance is the same for all pension companies. You can estimate the amount of YEL contributions with the YEL calculator.

You can estimate the correct level of YEL income by considering how much salary you should pay for a year to a person with the same level of skills to do your job. For estimating YEL income, a YEL income calculator, common to the pension sector, has been developed to give you a YEL income recommendation. The recommendation is based on your industry and your estimated turnover. I recommend that you use the YEL income calculator to see what the right level of YEL income would be for you.

The amount of YEL contributions depends on the entrepreneur's YEL income. With a higher YEL income, the contributions are higher, and with a lower YEL income, the contributions are lower. However, evaluating your YEL income as low as possible often means underinsurance. Underinsurance creates a significant risk to your livelihood, as YEL insurance not only covers you in old age, but also in the event of illness and unemployment, among other situations. In other words, YEL insurance affects your entire social security. With the YEL calculator, you can estimate the impact of your YEL income on your pension and social security.

You should not be fixed to a specific YEL income, but you should adjust it whenever there are changes in your business activity. Keeping your YEL income up to date throughout your entrepreneurial career means, above all, looking after your own social security and future pension. YEL insurance is the most important insurance for the self-employed.

YEL contributions are 22% cheaper for a new entrepreneur in the first four years. Varma will automatically take into account this so-called discount for the newly self-employed if the conditions are met. Read more about the discount for the newly self-employed.

The choice of instalment months and the number of instalments also affect the YEL contribution. The YEL contribution is cheaper if you pay it in one instalment in January, because then it is credited with interest. For example, with a YEL income of EUR 25,000, the annual YEL contribution is about EUR 110 lower if you pay it in one instalment in January than if you pay it once a month throughout the year. You can use the YEL calculator to plan which instalment months are suitable for your YEL insurance.

We'll be a partner that's sure to be by your side and that will perform its duties responsibly. As our YEL customer, you'll have access to Varma Online Service, our comprehensive digital service that makes it quick and easy to take care of your insurance matters. If you have any questions, our friendly experts are always ready to help you in Varma Online Service, via chat and over the phone.

We organise free webinars and events throughout the year on current topics such as pension insurance and work ability management. Take a look at our event calendar.

If you need support on work ability matters, you can use the Varma Academy learning environment in Varma Online Service to help you and your potential employees with their work ability. Also remember that when you hire employees, you can probably get TyEL insurance at the lowest cost from Varma. We look forward to welcoming you as our customer!

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