Life is unpredictable, so do not make any compromises when it comes to what matters most; namely, the social security of your family and yourself.
Your YEL insurance guarantees an income in case you fall ill or become disabled or unemployed. But it also plays a role in terms of positive events during your life, such as parental leaves and retirement with old-age pension.
You can use our YEL calculator to check how different levels of YEL income affects your social security. YEL income is the basis for the unemployment security, sickness allowance, parental allowance and pension of self-employed persons. It also determines the amount of your YEL contributions. YEL contributions safeguard security for your entire lifespan and benefits, depending on whether the paying party is a pension provider or Kela.
As an entrepreneur, you have the possibility to join the Entrepreneur Fund regardless of your line of business. Your YEL income must, however, be at least the minimum required for Kela’s unemployment security, which is €14,088 in 2023 or €14,803 in 2024. The lower limit for the YEL insurance rises annually, so it is important to monitor that the set YEL income remains above the limit. As a member of the Fund, you are entitled to an earnings-related allowance during any period of unemployment. Visit the website of the Entrepreneur Fund for more information.
The YEL insurance is the foundation for the benefits payable to you by your pension insurer or Kela (the Social Insurance Institution of Finland).
Kela
- Sickness allowance
- Maternity or parental allowance
- Unemployment allowance
Pension Insurer
- Rehabilitation benefit
- Old-age pension
- Sickness allowance
- Partial early old-age pension
- Survivors’ pension
In case of illness, entrepreneurs are subject to a one-day waiting period before receiving sickness allowance. Read more at Kela’s website.
Vocational rehabilitation for entrepreneurs through business subsidies
If you are an entrepreneur, you can receive a business subsidy for vocational rehabilitation. The subsidy is intended for the purchase of such equipment or devices that would enable you to continue working. Other methods of rehabilitation are also possible, whether you are continuing as an entrepreneur or shifting to salaried work.
Sometimes, a shift from salaried work to entrepreneurship is a way to get back into working life. When you can be your own boss, you can freely choose only to do such work tasks that are suitable for your health status.
It is also possible to get a business subsidy for the establishment of a company or the purchase of new tools and equipment. The subsidy is based on the assessment of need and must be accompanied by (an)other means of financing. When applying for a business subsidy, you must submit a free-form statement of your prerequisites to be an entrepreneur, as well as financial and profitability calculations. Visit our website to read more about vocational rehabilitation.