Changes in entrepreneurial activities and YEL insurance

Changes in your entrepreneurial activities, such as a change in the company’s legal form or ownership structure, may impact your YEL insurance. Below you can find instructions for the most common change situations.

When can I terminate my YEL insurance?

You can terminate your YEL insurance if your self-employment has ended completely or become so minor that your YEL income is lower than the lower limit specified for YEL insurance. You can submit the termination notification in our self-employed person’s online service.

Terminate your YEL insurance if:

your self-employment has ended completely or decreased to the extent that your YEL income is lower than the lower limit specified for YEL insurance
your company’s legal form, ownership structure or your position as an entrepreneur have changed so that you no longer need YEL insurance
there will be a long break in your self-employment due to, for example, maternity leave and you stop working completely for that period
you retire on an old-age pension or an early old-age pension.

You can also terminate your YEL insurance retroactively. If you continue your self-employment while on an old-age pension, you can take out voluntary YEL insurance.

Different life situations can also entail changes in your entrepreneurial activities. Below you can find instructions for the most common change situations.

Your company’s legal form impacts whether you need YEL insurance or not.

If you change your company into

a limited liability company and you hold alone more than 30 per cent or, together with your family members, more than 50 per cent of the company’s shares or votes, keep your YEL insurance in force. If your holding is smaller than that and your company pays you a salary, you should be insured under employees’ pension insurance (TyEL).
a general partnership, keep your YEL insurance in force. If your company has other partners and you pay them a salary, they should be insured under employees’ pension insurance (TyEL).
a limited partnership and you are a responsible partner, keep your YEL insurance in force. If your company has other responsible partners, they also need to take out YEL insurance.
self-employment, keep your YEL insurance in force. If your family members work in your company and their work input exceeds the lower YEL income limit, they also need to take out YEL insurance.

If your company has employees, check what you should do with their TyEL insurance.

When reporting a change in your company’s legal form, tell us

the name, business ID and address of the company and the date when the change took place
invoicing information, i.e. whether you want the YEL insurance invoices to be sent to you personally or to your company

To report the changes, go to ’My YEL contact details’ in our online service.

If your work input changes due to a change in the company form, you should also adjust the YEL income to reflect your changed work input.

Any change in your company’s ownership structure may affect whether you should insure yourself under YEL or TyEL insurance.

Terminate your YEL insurance if

you sell your company and close it and you do not continue as an entrepreneur
you own a general partnership or limited partnership wholly or partly and you sell all your holdings
you own a limited liability company wholly or partly and you sell your holdings, holding thereafter alone a maximum of 30 per cent or, together with family members, at most 50 per cent of the company’s shares or votes.

Take out TyEL insurance if you work in your company as an employee.

If your company has employees, check what you should do with their TyEL insurance.

If you pass your company on to the next generation and stop working there, terminate your YEL insurance. YEL insurance is always a self-employed person’s personal insurance, so it is up to the next generation to take out their own YEL insurance.

If your company has employees, check what you should do with their TyEL insurance.

Read more about TyEL insurance >

If you are on short sick leave, keep your YEL insurance in force. In our online service, you can also apply for more time to pay your YEL contribution during your sick leave.

If your work is interrupted for several months due to an illness or injury, it is usually worth terminating your YEL insurance. Terminate your insurance on the same date as the start date of disability confirmed by Kela. You can submit the termination notification in our self-employed person’s online service. If you resume your entrepreneurial activities after your illness, take out new YEL insurance.

Your YEL income determines the size of your sickness allowance. Apply to Kela for the allowance.

If you take parental leave and stop working in your company altogether, you can terminate your YEL insurance. If you continue working and your work input exceeds the lower YEL income limit, keep your YEL insurance in force. In that case, make sure that the income under your YEL insurance corresponds to your work input during the leave.

Your YEL income determines the size of your parental allowance. Apply to Kela for the allowance.

You can retire on old-age pension flexibly after you have reached the lower age for old-age pension. The pension does not begin automatically, so be sure to apply for it. When we grant you the old-age pension, we will terminate your YEL insurance automatically. If you continue your self-employment while on an old-age pension, you can take out voluntary YEL insurance. It allows you to accrue new pension.

If you continue your self-employment while on a disability pension, a partial disability pension or a partial old-age pension, keep your YEL insurance in force if your work input exceeds the lower YEL income limit.

Changes in entrepreneurial activities and YEL insurance

When can I terminate my YEL insurance?

Change in company form

Change in ownership and sale of company

Succession

Falling ill

Parental leave

Retiring on old-age pension

Report the changes in our online service