YEL and social security for the self-employed

​​Your social security is based on the income that you have reported for your YEL insurance. You should always keep your basic security at a sufficient level.

You will receive financial support if you fall ill or become unemployed, if your family expands or if you retire. Make sure right from the start that your basic security is sufficient.

 


Please note​


  • You will receive earnings-related unemployment allowance if your confirmed YEL income is at least EUR 12,564.00 per year  (in 2017), you meet the condition regarding previous employment and belong to an unemployment fund for the self-employed.      
  • The confirmed income for each year influences your future pension, so remember to keep your confirmed income at the right level from the very start of the insurance.

Social security for the self-employed

Sickness allowance

To be eligible for sickness allowance you must live permanently in Finland, be either self-employed or employed by another employer, be aged between 18 and 67 and be disabled as a result of an illness. The eligibility ends at the latest in the beginning of the month following the month in which you turn 68. Self-employed persons have the same rights as other persons do. A self-employed person is also entitled to partial sickness allowance if he or she is capable of continuing his or her business activities on a part-time basis after falling ill.

For a person insured under YEL, the qualifying period for sickness allowance is the day of illness onset and the following three weekdays.

The allowance is calculated based on your average confirmed income from two years earlier, adjusted with the wage coefficient. The allowance can also be based on the confirmed YEL income for the six months preceding your illness or parental leave, if it is 20% higher than the wage-coefficient adjusted income established in taxation when converted into annual income.

If you use the six-month period of confirmed income, you need an earnings statement from Etera. The easiest way to get one is by logging in to Etera’s web service.

The confirmed YEL income determines the amount of a self-employed person’s sickness allowance. If the self-employed person also gains earnings under an employment contract, these are also included in the confirmed income that is used as the basis for calculating daily allowances. Flexible payments of YEL contributions do not influence the sickness allowance.

Apply for sickness allowance from Kela The easiest way to do it is through Kela’s web service.

Tip! If you have an agreement with a private or public healthcare provider, you can simultaneously apply for reimbursement of 50% of your medical expenses from Kela.

Further information online
» Kela’s web page

Unemployment security

A self-employed person’s unemployment allowance is based on confirmed YEL income.

A self-employed person is eligible for unemployment allowance as of 1 January 2016, if

  • he or she has received, over the last four years, YEL, MyEL or TyEL earnings for at least 15 months.
  • his or her confirmed YEL income is at least EUR 12,420 per year in 2016.
  • he or she has discontinued or interrupted his or her business activities and the employment authority has established his or her eligibility for the benefit.

Kela will pay basic unemployment allowance if the self-employed person does not belong to an unemployment fund.

Further information online
» Kela
» The Unemployment Fund for Entrepreneurs and the Self-Employed

Maternity, paternity and parental allowances

​The amount of maternity, paternity and parental allowance is determined on the basis of the confirmed YEL income.

The basis used for the allowance is the average confirmed YEL income from two years earlier, which is adjusted using the wage coefficient. The allowance can also be based on the confirmed YEL income for the six months preceding the parental leave, if it is 20% higher than the wage-coefficient adjusted income established in taxation when converted into annual income.

If you use the six-month period of confirmed income, you need an earnings statement from Etera. The easiest way to get one is by logging in to the web service.

Maternity, paternity and parental allowances are applied for from Kela.

Further information online
» Kela’s web page

 

Workplace accident

​The statutory accident insurance covers accidents occurring at work, at the workplace and during commutes and professional diseases caused by work.

According to the Employment Accidents Insurance Act, a self-employed person who owns

· 50 per cent or less in the company shall take out statutory accident insurance for him- or herself
· more than 50 per cent can take out voluntary accident insurance.

Accident insurance for the self-employed
If a self-employed person is not covered by statutory accident insurance under the Employment Accidents Insurance Act, he or she can take out voluntary accident insurance for him- or herself and acquire even more extensive cover than that of his or her employees.

Annual earnings are determined for the self-employed person to serve as the basis for calculating the compensation for lost income. As a general rule, these annual earnings should equal the confirmed YEL income. The insurance contribution is determined on the basis of the annual earnings but also according to how hazardous the work is. Compensation for lost income under the voluntary accident insurance is paid according to the YEL insurance in force at the time of occurrence.

Take out statutory accident insurance
Etera’s partner Pohjantähti Mutual Insurance Company provides statutory or voluntary accident insurance for the self-employed.

Further information online
» Pohjantähti Mutual Insurance Company
» Federation of Accident Insurance Institutions


Frequently asked questions

If I go on sick or parental leave, how will my allowance be calculated?

​The sickness and parental allowances are determined based on the confirmed YEL income. The basis for allowances beginning this year is the average income confirmed two years ago, which has been adjusted using the wage coefficient.

The allowance can also be based on the confirmed YEL income for the six months preceding your illness or parental leave, if it is 20% higher than the wage-coefficient adjusted income established in taxation when converted into annual income.

If you use the six-month period of confirmed income, you need a YEL earnings statement. The easiest way to get one is by logging in to Etera’s web service.

What is the qualifying period for the sickness allowance for the self-employed?

If you are insured under YEL, the qualifying period for sickness allowance is the day of illness onset and the following three weekdays. The allowance is applied for from Kela, for example through Kela’s web service.