The YEL income confirmed in your YEL insurance will be the basis of your pension and social security.
The income shall not include business and financial results brought on by the entrepreneur’s salary, but the total of the entrepreneur’s input value.
A good guide is to match YEL income with roughly the equivalent of what salary would be paid to an employee with a similar profession and input value as the entrepreneur.
YEL income may be a minimum of 7 799.37 € per annum and maximum 177 125.00 € per annum (2019).
Income may be adjusted as the company develops, although not retrospectively. There it is prudent to maintain YEL income at the right level from the start.
YEL income is important already as young entrepreneur
Future pensions are directly based on your YEL income. When calculating pensions, income from your initial entrepreneurial activities is taken into consideration.
YEL income may, however, have an impact on your life substantially long before you reach pension age, as they also include
- maternity or paternity benefits
- illness benefits
- unemployment benefits
- disability pensions
- immediate family pensions
Should you want to check your aggregate benefits, KELA’s websites provide an automatic calculator (in Finnish and Swedish) for this purpose.
To become a member of the unemployment benefits group, your YEL income must be at least 12 816 € per annum (2019).
The basic unemployment allowance requires an YEL income of at least 12 811,07 € per annum (2019) for a minimum period of 15 months, within the past four years before becoming unemployed. Until the year 2015 the income limit was 8 520 € for a minimum of 18 months.
To apply for changes in your YEL income please use the form in the bottom of the page or contact our customer service, tel. 010 195 612
Several companies, one YEL income
If you run several companies and their activities, YEL income will cover your aggregate input value for all of them.
An entrepreneur is the major shareholder of two limited liability companies and is also the CEO of both. In one of the companies, his input value reflects 20 000 €, and in the other 10 000 € per annum. How does the entrepreneur handle his/her pension insurance?
Answer: The entrepreneur takes one YEL insurance policy, which reports an income of 30 000 € per annum.
YEL income rates are reviewed annually against reported salaries
The YEL income of the entrepreneur is reviewed every January and cross referenced with reported salaries. This way they are maintained at a level which corresponds to events in Finland affecting earnings and price changes.
Reported salaries are confirmed by the Ministry of Social Affairs and Health. Earnings contribute to 80 % of the coefficient while prices contribute 20 %.
We notify our customers of the reviewed income amount every year in an annual letter.