A survey on the development needs of the YEL system was published on Friday, 5 December. Rapporteur Jukka Rantala’s report contains proposals for developing the determination of YEL income. Rantala also analysed ways to initiate the funding of pensions for self-employed individuals.
“The YEL system is outdated and needs reform. The biggest challenges lie in the complexity of determining YEL income and the lack of funding. Rantala presents solutions to these challenges in his report,” states Staffan Åberg, Director for Pension and Insurance Services at Veritas.
In his report, Rantala proposes the following:
- YEL income would be determined primarily on the basis of taxable earned income for entrepreneurial activities.
- Alongside the standard rule, there would be a possibility to shift to the current type of income model when the confirmed YEL income exceeds EUR 35,000 per year.
- The four-month time limit for the obligation to insure would be waived.
- The income limit for insuring would be reduced to around EUR 2,520.
- The impacts of the reform would be monitored and the Parliament would be given a report after five years on the success of the reform and possible new measures.
Rantala also presents a few proposals for the funding of self-employed persons’ pensions.
What’s next?
At the publication event, Sanni Grahn-Laasonen, Minister of Social Security, stated that the Government would initiate dialogue regarding these issues, with the aim of reforming the YEL system still during this Government term.
“At this point, nothing changes for entrepreneurs, but we will monitor the development of the YEL system and keep our customers informed about the situation,” Åberg assures.
Read more:
- Ministry of Social Affairs and Health: Survey on the development needs of the YEL system completed (in Finnish, 5 December 2025)
- Tela: A responsible and fair YEL reform is needed – a recent survey provides data to support the process (in Finnish, 5 December 2025)
