YEL income as the basis for an entrepreneur’s pension insurance
Self-employed person’s pension insurance, i.e. YEL insurance, is the basis for an entrepreneur’s pension and social security. Your pension, social security benefits and YEL contributions will be calculated based on your YEL income. On this page you can read more about estimating, determining and changing YEL income, and see the YEL income limits.
What is YEL income and what does it impact?
YEL income is the monetary value of your work input. YEL income is not your taxable income, the salary you pay yourself or your company’s profit or sales.
The YEL income is used as the basis for calculating the pension that you accrue from your entrepreneurship and your YEL insurance contribution. Also the allowances paid by Kela, such as sickness and parental allowances, are calculated based on your YEL income. It also defines the level of your unemployment security and voluntary accident insurance.
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We review YEL income together with the self-employed
As of 2023, pension companies are obligated to regularly review that entrepreneurs’ YEL income meets the recommendations and corresponds with the work input.
Read more about the YEL income reviews
How do I estimate my YEL income?
When you estimate your YEL income, think about it like this: how much would you pay a person with the same competence as you to do your job for the space of a year?
An entrepreneur’s YEL income is always determined on an annual basis, regardless of when your YEL insurance begins. For example, if your YEL insurance begins on 1 March 2025, your YEL income is estimated for the period 1 March 2025–28 February 2026.
You can use the YEL income calculator below to estimate an indicative YEL income recommendation. The recommendation is based on your estimated turnover and your sector. In addition to the recommendation, the calculator provides a 30-per-cent leeway, by which you can deviate from the recommendation, either up or down. All of the pension insurance companies use the Finnish Centre for Pensions’ joint calculation service.
When you apply for insurance or change your YEL income in our online service, you can provide more information on the quality and scope of your entrepreneurial activities. The YEL income recommendation shown by the service also takes your earnings from other work into consideration.
Calculate YEL income recommendation
With the calculator, you can calculate a business sector specific indicative work income recommendation for full-time entrepreneurship. Use it like this:
- Enter an estimate of your future 12-month turnover.
- Select your main business sector from the drop-down menu.
- Press the button "Calculate recommendation".
When can you deviate from the YEL income recommendation?
If the YEL income recommendation given by the calculator and the maximum 30-per-cent larger or smaller leeway do not sufficiently take into account the value of your work input, it is possible to deviate from the YEL income recommendation for a justified reason. You can read more about these reasons below. If the YEL income you applied for deviates from the leeway offered by the recommendation, we will ask you for more information on your situation.
Pension companies apply the Finnish Centre for Pensions’ YEL application instructions, which describe the situations in which it is possible to deviate from the YEL income recommendation. Reasons can be:
- The secondary, seasonal or part-time nature of the entrepreneur’s work
- Entrepreneur’s small or larger than average working hours
- Exceptional nature of tasks (e.g. support tasks, entrepreneur’s family members)
- Number of employees
- The highest salary paid to an employee
- Salaries, fringe benefits or other actual earnings taxed as the entrepreneur’s earnings when they are larger than the YEL income recommendation
How is the final YEL income estimated and confirmed?
Making a YEL income decision requires weighing various aspects and carrying out an overall assessment of the entrepreneur’s personal situation. We comply with the Self-Employed Persons’ Pensions Act (YEL) and the Finnish Centre for Pensions’ application instructions when confirming the YEL income.
If the estimated YEL income is at the recommended level, we will confirm your annual YEL income.
If the YEL income you apply for differs from the level of the YEL income recommendation, we will ask you for more information to carry out the overall consideration. That is why it is important that you provide a comprehensive overview of your current situation already at the application stage, such as the scope and quality of your entrepreneurial activities. It is possible to deviate from the leeway for justified reasons, which are detailed above.
YEL income lower and upper limit
YEL income has lower and upper limits. The limits change annually in accordance with the wage coefficient confirmed by the Ministry of Social Affairs and Health. If your YEL income is at least equal to the lower YEL income limit, you have the obligation to take out YEL insurance.
In 2025 the lower limit is EUR 9,208.43 and the upper limit is EUR 209,125. In 2024 the lower limit is EUR 9,010.28 and the upper limit is EUR 204,625.
| Year 2025 | € / year |
|---|---|
| Entrepreneurial activities must be insured if the self-employed person's work input is valued at more than | 9,208.43 |
| The upper limit of YEL income for a self-eployed person is | 209,125.00 |
| A self-employed person who is unemployed can collect basic daily allowance from Kela if his/her YEL income is at least | 15,128.00 (14,803.00 in 2024) |
| A Self-employed person can join the unemployment fund if his/her YEL income is at least |
15,128.00 (14,803.00 in 2024) |
When should I change my YEL income?
Your YEL income can be changed as required if your work as an entrepreneur changes. Your YEL income will be increased, for example, when your entrepreneurial activity expands or your part-time entrepreneurial activities turn into full-time self-employment. Similarly, the YEL income can be reduced if your work input decreases.
You cannot change your YEL income retroactively, so it is advisable to react to changes in your entrepreneurial activities right away. You can apply for a change in your YEL income in our online service, after which we will confirm for you a YEL income corresponding to your annual work input. Changes other than those concerning your entrepreneurial activities and working, such as receiving larger social benefits, are not grounds for changing your YEL income.
How does YEL income affect my income in various life situations?
The table shows which benefits paid by Kela or other parties your YEL income has an impact on.
| Situation | Benefit to be applied for | Impact of earned income | Who pays |
|---|---|---|---|
| You fall ill | Daily sickness allowance | Your daily sickness allowance is based on your earned income |
Kela |
| You have a baby | Parental allowance | The allowance is based on your earned income |
Kela |
| You lose your ability to work due to an accident or illness |
Vocational rehabilitation and/or disability pension |
The compensation is based on your earned income |
Employment pension insurance company |
| You lose your ability to work or die due to an accident |
Compensation from accident insurance; daily allowance, rehabilitation, survivor's pension etc. |
The compensation is based on a sum that is at most equal to your earned income |
Non-life insurance company |
| You lose your job | Basic daily allowance | To accumulate the daily allowance, your earned income must beat least EUR 15,128 in 2025 (EUR 14,803 in 2024) |
Kela |
| Labour Market Subsidy | A means-tested benefit when you are not entitled to basic daily allowance |
Kela | |
| You lose your job | Earnings-related daily allowance | To accumulate the daily allowance, your earned income must be at least EUR 15,128 in 2025 (EUR 14,803 in 2024) |
The Unemployment Fund for Entrepreneurs and the Self-employed AYT or the Finnish Unemployment Fund for Entrepreneurs SYT |
| You want to work less or take out part of your pension |
Partial early old-age pension | The amount is either 25 or 50 percent calculated from the pension that you have accrued by the end of the year preceding your retirement |
Employment pension insurance company |
| You age | Old-age pension or years-of-service- pension (under certain conditions) |
The pension is based on your earned income |
Employment pension insurance company |
| You die | Survivors' pension | The pension is based on your earned income |
Employment pension insurance company |
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YEL income and a self-employed person’s social security
A self-employed person’s social security benefits such as the sickness allowance, parental allowance and unemployment security, are based on YEL income.
Read more about social security for the self-employed -
YEL income and a self-employed person’s pension
The size of the YEL income affects a self-employed person’s pension amount.
Read more about self-employed person’s pension