In 2017 Finnish Centre for Pensions made a decision that all light entrepreneurs (self employed) have to have a YEL insurance (if over the 12 month income limit). It is the best solution for all light entrepreneurs and Therefore, Free-Kevytyrittäjä had been asking for the change.
There will always be some changes to the Finnish laws concerning invoicing, employment and entrepreneurship. Free-Kevytyrittäjä is actively following the changes and we will offer a service which suits your needs and we do everything according to the Finnish laws. So you don’t need to worry about the paper work – we will help you with everything.
What is YEL?
YEL-insurance is entrepreneurs pension insurance. It is a versatile tool to use regarding how much you want to accumulate pension and how much you want to pay monthly for your pension insurance. It is a personal pension insurance and it’s cost can be decided (upon some factors) by the taker of the insurance. YEL is also deductible in your personal taxation if you have taken YEL over the lowest possible level.
YEL insurance payments depend on your given estimation of your light entrepreneur incomes.
First time getting YEL-insurance?
If you are getting your first YEL insurance, you will get it for a lower price for the first four years, the YEL payment will be 22 lower during this period.
You can get YEL easily from Free-laskutus. The monthly payment depends on your estimated light entrepreneur income. You will get the monthly invoice for YEL at your home address.
When using Free-laskutus you do not have to pay for regular work pension insurance anymore, instead you can decide the level of the insurance payments.
YEL insurance is also involced when you might need to have other social security services such as sick days or parenting leaves.
When do I need to have YEL?
You need to have YEL if, you are working as a light entrepreneur or getting earned income by using invoicing services if:
- You are a light entrepreneur using invoicing services
- You are 18-68 years old
- You will be working as a light entrepreneur for at least 4 months or have done so
- Your estimation for your income from light entrepreneur work is over 7 645,25€
Your work income includes all income from light entrepreneur like work. Even if you don’t reach the limit for YEL you can still take YEL insurance if you want to.
You need to have YEL insurance within 6 months when you have achieved the given limits. For more information, please contact our customer support!
How do I get YEL-insurance?
In Free-Kevytyrittäjä, we handle the insurance for you. The easiest way for you to get YEL-insurance is to do it through our Extranet-service. You need to estimate your earnings and according to your estimate earnings, the insurance will come into effect. You will receive a bill straight to your home. After paying the bill, you will enjoy the benefits of the insurance.
Please note that YEL insurance is tax deductible and your YEL insurance contributions will automatically be passed on to the tax authorities.
You are able to estimate as you see the best. Official guidance is that your earnings share corresponds to your previous year’s earnings. You will also receive various social security benefits to match your income level.
The YEL policyholder has the opportunity to freely change his earnings estimate and thus react to changes in his own operations.
For more information on the size of YEL insurance, please visit the Pension Insurance Company VARMA:s website.