What is YEL income?

 YEL income refers to the monetary value of your work input. YEL income is not the same as the salary you pay to yourself from your business, instead, it refers to the value of your work input within your entrepreneurial activities as a whole. The primary factors contributing to the amount of your YEL income are the size, turnover and field of your business.  When estimating your YEL income, consider how much salary you would need to be paid if you were an employee in a corresponding job elsewhere.

Your YEL income serves as the basis for calculating your YEL insurance contribution and, in the future, your pension. In addition to your earnings-related pension, your YEL income also affects the level of various social benefits that provide you with security already during your work career.

Read more about the impact of YEL income on the pension and social security of a self-employed person >

YEL income is determined as an annual sum that is estimated to correspond to your work input during 12 months. When estimating the amount of your YEL income, it is useful to first think what the value of your work input would be on a monthly level and then multiply it by twelve. 

When you take YEL insurance from us or change your YEL income in Elo’s Online Service, we will assist you in estimating the correct YEL income. In the Online Service, enter your field of business and your estimated turnover, and you will be given a recommended YEL income based on them. The recommendation comes with a range within which you can deviate from the proposed YEL income without any specific justification. For larger deviations, we will ask you to provide further clarification.

For the purposes of determining your YEL income, the following factors will be taken into consideration:

• the number of your working hours
• the field of your business
• the turnover of your business
• the possible seasonal nature of your entrepreneurial activities, and
• the number of possible employees in your business

If you have several businesses, your work input in all of them will be taken into consideration as a whole. 

The pension company will confirm your YEL income on the basis of an overall assessment including, in addition to the above-mentioned factors, also your individual situation. The assessment will be done in compliance with the Self-Employed Persons’ Pensions Act (YEL) and the application instructions issued by the Finnish Centre for Pensions (ETK). If necessary, we will ask you to provide us with additional information to be able to confirm your YEL income.

 All YEL-incomes are adjusted annually on the first day of January according to the wage coefficient. The purpose of the change is to keep the entrepreneur’s income in line with the general wage and price development. The Ministry of Social Affairs and Health confirms the wage coefficient annually by the end of October.

• Minimum for insuring 9,208.43 €/year (9,010.28 €/year in 2024)
• Minimum for unemployment security 15,128.00 (14,803.00 €/year in 2024)
• Maximum for insuring 209,125.00 (204,625.00 €/year in 2024)

The minimum and maximum limits for YEL income are determined by law. Entrepreneurial activities that fall below the minimum limit are considered as not fulfilling the necessary conditions for YEL insurance. In order to meet the condition for previous employment, a self-employed person must have an income of at least the minimum as specified in the Unemployment Security Act (Työttömyysturvalaki 1290/2002). The same minimum income limit is also a condition for membership in the Yrittäjäkassa (unemployment fund for entrepreneurs). 

YEL income amounts and YEL income limits are automatically increased annually with the wage coefficient confirmed by the Ministry of Social Affairs and Health. The wage coefficient ensures that your income remains consistent with the general development of the salaries and price levels. No other automatic adjustments or changes are made to the YEL income, so, as a self-employed person, you will always need to notify us of any changes in the extent of your business activities or work input. The easiest way to notify us is through our Online Service.

If there are changes in your entrepreneurial activities that affect the amount of your work input, your YEL income should also be re-evaluated. This can refer to, for example, a change regarding part-time or full-time work. It is not possible to change the YEL income retroactively, so you should notify of any changes as soon as possible. The YEL income cannot be changed on the basis of the profitability of your business and it is not affected by temporary fluctuations in the amount of income. The easiest way to notify of changes is to go to Elo’s Online Service. 

From the beginning of 2023, pension companies will review and adjust the YEL income of self-employed persons every three years to make sure it is up-to-date. When reviewing your YEL income, we will consider, for example, the turnover of your business over the past three years. If your YEL income is subject to a review, we will contact you and propose a new YEL income. You can influence the adjustment of your YEL income by responding to our proposal and providing details with regard to the current extent and quality of your entrepreneurial activities.