YEL insurance

An entrepreneur’s pension and social security base is described as the entrepreneur’s employment pension insurance, i.e. YEL insurance. An entrepreneur is defined as a person who performs paid work without being in a working relationship.

An entrepreneur operating in Finland is obliged to take YEL insurance, if he/she is over 18 years old

  • professional practitioner i.e. a private business holder, or his/her spouse, who works at the company
  • other professional member of family, who works at the company and is unpaid
  • partner of an open partnership
  • general partner of a limited partnership
  • leading position holder of a limited liability company, who alone owns more than 30% of company shares or votes, or owns more than 50 % of company shares or votes together with a family member

whose contribution to the company equates to a minimum of 7 656.26 € per annum (2018).

A member of family is defined as a married or unmarried couple, registered partnership partners, as well as a direct member of family of either partner, who permanently lives in the household of the entrepreneur.

The upper age limit for insurance is either 68, 69 or 70 years. It depends on what year you were born.

  • born in 1957 or earlier >  68 years
  • born in 1958–1961 > 69 years
  • born in 1962 or after> 70 years.

Take out YEL insurance

Six months time to take an insurance policy

YEL insurance policies are to be taken within six months of when the aforementioned criteria have been filled.

Operations lasting four months or less do not require insurance. However, it is insignificant if the activity of the entrepreneur is a secondary operation or if it is running other profitable activities on the side.

Indirect ownership of a limited liability company is also taken into account

Limited liability shareholders consider the indirect ownership through another company, if the shareholder is in a management position and is an owner of over 50 % of shares (or equivalent influence) of another company alone or jointly with a family member.