What constitutes a suitable level of confirmed YEL income?

​​​As a self-employed person, your confirmed YEL income is used to calculate your pension and social security as well as your YEL insurance premiums. It should be set at a sufficient level right from the start.

Pension will be paid into your account in accordance with your confirmed YEL income. And if you fall ill or welcome a new family member, your confirmed YEL income will be used to calculate your daily allowance.

Each self-employed person is responsible for ensuring that their confirmed YEL income is at a sufficient level. Your confirmed income may be changed, but it cannot be adjusted retroactively.

What constitutes confirmed YEL income? Your confirmed income must correspond to your work input. It should correspond to the pay that a person with the same level of professional skill as you have would receive in an employment relationship. You should always keep your confirmed income up to date. This will secure your livelihood in different life situations.

In 2017€/year
Entrepreneurial activities must be insured if your work input as a self-employed person is valued at more than



The upper limit of confirmed income for a self-employed person is173,625.00
You are entitled to unemployment security if your earned income is at least12,564.00
Average income in Finland22,000

The effect of confirmed YEL income on a self-employed person's social security

​Instructions for determining a sufficient level of confirmed income

Here are a few tips for determining your income.

  • Think about how much you would pay a substitute worker monthly for performing the same work you do. Take into account the amount of hours you work. Then multiply that monthly amount by 12 to arrive at a suitable annual confirmed income.
  • Think about a monthly income that you could comfortably live on if you fall ill or retire. Select your confirmed income accordingly.
  • The website of the Finnish Centre for Pensions offers profession-specific recommendations on how to calculate confirmed income.​
  • If you are unsure of the level of your confirmed income, you can select the average confirmed income in Finland, which is EUR 22,000.

YEL income and pension

​A self-employed person’s pension is accrued based on his or her confirmed YEL income for each year. The confirmed income serves as the basis for determining old-age, disability and survivors’ pension. Compared to voluntary pension, YEL insurance offers you lifelong old-age pension security.

Pension accrual

As of the beginning of 2017, entrepreneurs will accrue pension on earned income at a rate of 1.5 per cent per year. Due to the transitional provision, the pension accrual for people aged 53–62 years is 1.7 per cent of the earned income. This age group also has 1.5 percentage point larger YEL contributions.

Pension accrual until 31 December 2016
Until the end of 2016, self-employed person’s pension has accrued on earned income per year at a rate of

  • 1.5% for those aged 18–52
  • 1.9% for those aged 53–62
  • 4.5% for those aged 63–67

You can see how much pension you have accrued in the ‘My Pension’ (Oma eläke) service

In the ‘My Pension’ online service, Etera’s clients may view their pension accrual and calculate how a change in confirmed income affects their pension. Logging in to the service requires Finnish personal banking codes.

YEL income and benefits from Kela

Confirmed YEL income influences the following benefits granted by the social insurance institution Kela:

  • sickness allowance
  • maternity, special maternity, paternity and parental allowances, as well as partial parental allowance
  • special care allowance
  • rehabilitation allowance

The average confirmed YEL income for 2015 is used as the basis for sickness allowance, maternity, paternity and parental allowance and rehabilitation allowance paid out in 2017; the confirmed income is adjusted using the wage coefficient.

  • If earnings are gained by means other than self-employed activities, these are also included in the confirmed income that is used as the basis for calculating daily allowances.
  • If your confirmed YEL income has increased by at least 20 per cent since 2015, including the adjustment with the wage coefficient, the daily allowance can be applied for on the basis of the confirmed income of the six months preceding the period of daily allowance. If this six-month period of confirmed income is used as the basis for the daily allowance, an earnings statement must be submitted to Kela.

You can get a YEL earnings statement from Etera’s web service
You can get an earnings statement for Kela conveniently by logging in to Etera’s web service or by phoning our customer service for the self-employed.

YEL income and unemployment security

A self-employed person who becomes unemployed may also receive unemployment allowance from Kela or, if he or she belongs to a fund, earnings-related unemployment allowance from an unemployment fund for entrepreneurs.

If the self-employed person belongs to an unemployment fund, the following conditions must be met:

  • Confirmed YEL income must be at least EUR ​12,564.00 in 2017.
  • He or she must have had, over the last four years, confirmed YEL income, MyEL income or TyEL earnings in an amount that meets the condition regarding previous employment for at least 15 months. In 2017, the confirmed income required under the condition regarding previous employment is at least EUR 1,047 per month, including confirmed YEL and MYEL income and TyEL earnings earned as a self-employed person.
  • Earnings-related unemployment allowance can be granted if the self-employed person belongs to an unemployment fund for entrepreneurs, and has been a member for 15 months.

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

YEL income and health insurance contributions

​Confirmed YEL income is used as the basis for determining a self-employed person’s health insurance contributions. These contributions are included in the self-employed person’s withholding tax percentage.

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.

» Pohjantähti Mutual Insurance Company
» Federation of Accident Insurance Institutions