The Self-Employed Persons’ Pensions Act (YEL) obliges pension insurance companies to review the YEL income of self-employed persons regularly, at intervals of three years. Veritas will start the reviews after the summer.
Your YEL income will be reviewed this year if
- your YEL income is less than EUR 25,000 per year (you can check your own YEL income in Veritas’ online service)
- your YEL insurance policy has been in force for at least three years
- you have not adjusted your YEL income significantly (more than 15%) in three years.
”It is a good idea for the entrepreneur to log in to the Veritas online service before the review and make sure that their contact details are up to date. All actions related to the review can be taken care of in the online service,” says Anne Wesalainen, YEL Product Manager at Veritas.
The pension insurance company may adjust the YEL income by a maximum of EUR 4,000. In other words, the increase in the YEL insurance contribution may, at the most, be approximately EUR 85 per month. If the YEL income of a self-employed person is correctly estimated, no changes will be made to the contributions.
Please note: The maximum increase of EUR 4,000, as set by law, only applies to reviews initiated by a pension insurance company. This provision is valid for the first two reviews carried out by a pension insurance company. The maximum increase limit does not apply if you seek a change to the YEL income level yourself. In this case, the common YEL income calculation service of the employment pension sector is used as the foundation and the YEL income is confirmed on the basis of an overall assessment.
How will the review proceed?
Before the review, we will send preliminary information to those customers whose YEL income will be reviewed this year.
If your YEL income is being reviewed, the process proceeds as follows:
- We will send you a conditional decision for your new YEL income during the autumn.
- If the information on which the decision is based is correct, you do not need to do anything. We will confirm your new YEL income on the basis of the proposal.
- If the information needs to be corrected, you should provide us with additional information via the online service within two weeks. We will take into account the information you have provided and, if necessary, make a new decision.
The proposed YEL income will be calculated using the YEL income calculator shared by the employment pension insurance sector. For the proposal, will take into account the turnover of your company/companies for the past three years as well as the median salary and turnover in your line of business.
The calculated recommendation is issued automatically on the basis of this data and does not take your individual situation into account. The recommendation is, therefore, always an estimate and you have the opportunity to submit further information to Veritas that will affect the final YEL income decision.
