YEL contributions

Insurance contribution percentages are confirmed annually by the Ministry of Social Affairs and Health, which implies that they are the same for all pension insurance companies.

YEL insurance contributions are counted as a percentage of the entrepreneur’s YEL income. In 2018, YEL contributions are as follows:

  • 24.1 % of YEL income for under 53 year olds
  • 25.6 % of YEL income for 53-62 year olds
  • 24.1 % of YEL income for persons aged 63 and older.

New entrepreneurs who take out YEL for the first time receive a 22 % discount during the first four years.

YEL contributions are deductible

YEL payments can be paid by the entrepreneur themselves or by his/her company. Payments may reduce the total amount of payable taxes required.

If YEL contributions are paid by the entrepreneur themselves, they may be deductible either from the entrepreneur’s, or the entrepreneur’s partner’s taxes.

Veritas will notify tax bureau automatically of the entrepreneur’s YEL income, but the entrepreneur must themselves remember to notify once the YEL insurance contributions have been paid.

Not worth compromising when it comes to your safety

Because an entrepreneur has so many expenses, it may be tempting to drop your YEL insurance payments to the minimum. This is however a very short-term method of cutting costs.

If life doesn’t roll out as planned, illness, unemployment, as well as disability and family pensions benefits may be reduced significantly. It is therefore vital to have a wise long-term perspective and not compromise yours and your family’s security.