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 launch the next review round during the autumn.
Your YEL income will be reviewed this year if
- your YEL insurance policy has been in force for at least three years
- it has not been reviewed or significantly adjusted (by more than 15%) in the past three years.
“This year, we will review the YEL income of everyone whose income has not yet been reviewed,” says Service Manager Jaana Lehikoinen.
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 YEL income calculation service of the employment pension sector serves as the basis, 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 at the correct level:
- You will receive a message from us confirming that we have reviewed your confirmed income under the YEL insurance. We will not propose any changes, and no further action is needed.
If your YEL income is not at the correct level:
- 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 based on the decision you have received.
- If some of the information needs to be changed or the information on which the decision is based does not correspond with your current situation, 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 calculation service shared by the employment pension insurance sector. The proposal takes into account the turnover of your company or companies over 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.
YEL investigation underway
The Ministry of Social Affairs and Health launched an assessment at the beginning of the year to evaluate the development needs of the YEL system. The investigation aims to identify challenges in defining YEL income and to explore alternative solutions.
“It is a good thing that this issue is being examined. Working life has changed, and the YEL system needs to be updated. Entrepreneurs deserve a pension system that accommodates different forms of entrepreneurship,” says Lehikoinen.
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