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YEL in 2026: who needs it, what it costs and when to take it out

Published 26 September 2026

YEL, the self-employed person's pension insurance, is compulsory once you live in Finland, are at least 18 and below the upper age limit (69 or 70, depending on the year you were born), have been self-employed for at least four months without a break since turning 18 and have a YEL income of at least 9 423.09 euros a year. In 2026 the contribution is 24.40 % of your confirmed YEL income at every age, and the insurance must be taken out within six months of starting your business.

The 2026 figures

Who must take out YEL

You must take out the insurance when all of these apply:

• you are at least 18; the obligation ends at 69 if you were born in 1958–1961 and at 70 if you were born in 1962 or later, at the end of that calendar month
• you work as a self-employed person or a light entrepreneur
• you live in Finland
• your self-employment has lasted at least four months without a break since you turned 18
• your YEL income is at least 9 423.09 euros a year.

In a limited company (Oy), YEL applies to someone in a leading position who owns more than 30 % of the shares or votes alone, or more than 50 % together with family members. Owning is not enough on its own: the obligation starts only when you also work in the company. YEL also applies to a foreign self-employed person who works in Finland; our article on starting a business in Finland as a foreigner covers the other steps.

What YEL income means

YEL income is the value of your work in money. The rule of thumb is the wage you would pay someone you hired to do the same work. The pension provider assesses it from the median wage in your field, how much you work, the scale of the business and your skills. All providers use the same calculator, which gives a recommendation, and the confirmed income should normally sit within 30 % of it.

The provider raises the income each year with the wage coefficient and reviews it every three years; in the first two reviews it can raise it by at most 4 000 euros each time. If your business changes, you can ask for a change, but the income cannot be changed retroactively. In a given year you can also pay 10–100 % more, or somewhat less, without changing your confirmed income or your benefits from Kela.

What it costs

The contribution is your YEL income times 24.40 %. The monthly figures below are the yearly contribution divided by twelve.

The first time you become self-employed, you get 22 % off the contribution for four years, 48 months. If the business ends sooner, you can use the remaining discount months later. The contribution is fully deductible in taxation. How it works for an Oy owner's salary and dividends is in our article on salary or dividends.

When to take it out, and what happens if you do not

You take out the insurance within six months of starting your business, from a pension insurance company (Elo, Ilmarinen, Varma, Veritas) or a pension fund that insures the self-employed.

The Finnish Centre for Pensions checks insurance against tax and income data. If it finds that you fall under YEL, it asks you to take out the insurance. If you do not, it takes out the insurance on your behalf and at your cost. Insurance can be taken out retroactively for the current year and the three before it at most, and earlier periods can no longer be put right. Pension accrues only from contributions actually paid: if a year's contributions go wholly unpaid, that year's YEL income counts as zero for the pension.

What your YEL income affects

Your YEL income decides your pension: it accrues at 1.5 % of the income a year, so a year at 28 000 euros adds about 35 euros to your monthly pension. Your sickness allowance and the compensation from voluntary workers' compensation insurance are based on the same income, and it also affects your parental allowance and unemployment allowance. Unemployment cover needs a YEL income of at least 15 481 euros. A low YEL income makes the contribution small, and the cover too.

When you want the whole picture checked

YEL income, the contributions and their deduction belong with the bookkeeping and the tax return. See our services.

Sources

• Työeläke.fi: when do I need YEL insurance
• Työeläke.fi: what is YEL income
• Työeläke.fi: pension amount and contributions
• Työeläke.fi: how earnings-related pensions change in 2026
• Finnish Centre for Pensions: supervision of self-employed persons' insurance (in Finnish)

Please note: this is general information about Finnish rules, not advice for your own situation, and the rules change. Ask us before you act on it.

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