What does YEL insurance for the self-employed cost?

Your YEL premiums are calculated according to your YEL earnings. The premiums are flexible. If you so wish, you can temporarily decrease or increase the premiums. YEL premium payments are fully tax-deductible.

All pension insurance companies apply the same YEL premium, which is confirmed by the Ministry of Social Affairs and Health.

2017YEL premium on earnings
18–52 years24.10 %
53–62 years25.60 %
​63–67 years​24.10 %
Reduction for starting entrepreneurs (reduction 22%) ​
Starting entrepreneur 18–52 years18.80 %
Starting entrepreneur 53–62 years19.97 %
​Starting entrepreneur 63–67 years​18.80 %
Insurance contribution interest rate2.0 %

The pension premium for self-employed persons aged 53–62 and over is higher, as a higher accrual rate is used to calculate their pension.

How many instalments? You can pay your YEL premiums in 1–4, 6 or 12 instalments. However, half of the payment months must be before August. The due date for the YEL premium is always the 20th day of the month or the first weekday after the 20th. The payment months can be easily changed on Etera's web service.

Struggling to make payments? If a premium payment is delayed, penalty interest will be calculated on it starting from the due date until the date on which the payment is made. The penalty interest is 8.50 % per cent.

If you are unable to pay your YEL premium on time, please contact our customer service. We can set up a YEL premium payment plan for you. Any unpaid YEL premiums will lower your pension. YEL premiums can be collected by way of enforcement.

Did you know this about the YEL premiums?

Starting entrepreneurs are eligible for a reduction

A person starting up a business for the first time gets a reduction on his or her premiums.

  • The reduction is granted for four years. 
  • If you have not used up the full 48-month period of reduction, you can also use it when starting up your second self-employed activity. 
  • When a self-employed person transfers from TyEL to YEL for the first time, the self-employed activity is considered to have started on the transfer date.

The reduction for starting entrepreneurs is not granted if

  • the self-employed person has been covered by YEL insurance prior to 2001
  • the self-employed person has been exempted from YEL insurance prior to 2001
  • the Finnish Centre for Pensions has been forced to take out enforced insurance for the self-employed person.

Use the reduction to your full benefit

It is advisable to keep your earnings level as high as possible while you are receiving the reduction for starting entrepreneurs. The decreased premium percentage will not affect your pension accrual. Pension will accrue as usual according to the accrual rate based on your age.

Flexible YEL premium payments

Self-employed persons can pay YEL premiums flexibly according to their financial situation. You can notify us of the use of the flexible payments option by logging in to Etera's insurance service or by phoning our customer service. Etera must receive the notification during the calendar year in which you wish to use the flexible payment option.

YEL premium increase

Paying a higher premium improves the pension cover accrued during the year in question.

  • The basic premium can be increased by 10–100 per cent. 
  • However, the increased YEL premium must not exceed the premium calculated according to the maximum YEL earnings. 
  • The flexible payment option can only be used once in a calendar year. 
  • The additional premium can be deducted in taxation by the self-employed person, his or her spouse, or the company, just like any other YEL premium. 
  • Additional premiums can be paid every year. 
  • Please note that an increased YEL premium will not affect other elements of social security. If you wish to increase your level of social security, you should increase your YEL earnings.

In which cases is a YEL premium increase not taken into account?

  • The increase will not affect other social security benefits, such as sickness and parental allowance. 
  • When calculating the standard earnings from full-time work that are used as the basis for part-time pension, additional premiums are not taken into account for the year preceding the start of the pension. 
  • When calculating the pensionable projected service for disability pension, additional premiums paid during the year preceding disability are not taken into account.

YEL premium decrease

Paying a lower pension premium will correspondingly lower your pension cover. The decrease will not affect other social security benefits, such as sickness and parental allowance.

  • The basic premium can be decreased by 10–20 per cent. 
  • The decreased YEL premium may not be below the minimum annual YEL earnings. 
  • The flexible payment option can be used once in a calendar year. 
  • Premium payments can be decreased three times over seven consecutive years.

In which cases is the flexible payment option not granted?

  • When the self-employed person receives a reduction for starting entrepreneurs
  • When the YEL insurance has not been in force with Etera for an entire calendar year 
  • After the year in which the self-employed person reached the age of 62 
  • When the self-employed person has unpaid insurance premiums
  • When the self-employed person receives an earnings-related pension from Finland.

YEL premiums are fully tax-deductible

The deduction can be made on a self-employed person's or a company's taxable result.

  • If the premiums are paid by a company, they will be deducted from the company's taxable result. 
  • If the premiums are paid by a self-employed person, the tax deduction will be made in his or her earned income taxation or, alternatively, in the earned income taxation of his or her spouse.

You can request an extended payment plan before the due date

If you are struggling to make payments, you should agree with Etera on a payment schedule. The payment agreement must be made before the due date. By agreeing on a payment plan, you will avoid any additional expenses from the delayed payment of insurance premiums and the receivables being collected by way of enforcement.

YEL premiums can be collected by way of enforcement.

Unpaid YEL premiums can be collected for five years after the year in which the premiums were payable. If the premiums are unpaid at the expiry of the collection period, the YEL earnings for the year in question will be the earnings calculated on the basis of the paid premiums when calculating the pension.

Unpaid premiums lower pension

Expired unpaid YEL premiums will lower your pension. For example, if half of the premiums are unpaid, the earnings for the year in question are 50% lower due to the unpaid premiums.

What are a self-employed person's other social security premiums?

A self-employed person's social security cover includes

  • YEL insurance 
  • voluntary accident insurance 
  • voluntary unemployment security.

The statutory social security contributions for an employer are:

  • earnings-related pension premiums for employees 
  • employees' accident insurance premiums, unemployment insurance premiums, group life insurance premiums 
  • social security premiums (sickness insurance premiums)

Further information on social security premiums

Social security premiums and income thresholds, pdf