YEL stands for the Self-Employed Persons' Pensions Act. YEL is statutory insurance that must be taken out under certain conditions. YEL insurance secures the self-employed person's income after retirement and during illness, parental leave and unemployment.
When? You need to take out YEL insurance within six months of starting business activities as a self-employed person. However, it is best to arrange the insurance immediately, as the premiums will be charged retrospectively from the start of the self-employed activity and increased with the technical interest rate. A penalty for failure to insure will be charged if insurance is taken out too late.
The obligation to insure starts from the beginning of the month following your 18th birthday and ends at the latest at the end of the month in which you turn 68.
Foreign entrepreneur and YEL
Finland is covered by co-ordinated social security provisions together with EU and EEA countries and Switzerland. In these countries a self-employed person is normally covered by the social security system of the country he/she works in. Under certain conditions, he/she can remain within the scope of the Finnish social security system.
Finland has bilateral social security agreements with Australia, USA, Canada, Quebec, Israel and Chile, but provisions on self-employment in these countries are scarce or non-existent.
What are the EU and EEA countries and social security agreement countries?
Pension cover and a foreign entrepreneur from an EU or EEA country or Switzerland
Working in several EU/EEA countries or Switzerland
Pension cover and a foreign entrepreneur from other than an EU or EEA country or Switzerland