The Self-Employed Persons’ Pensions Act (YEL) was amended on 1 January 2023. The legislative reform obliges pension insurance companies to review and adjust 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 and possibly adjusted this year if
- your YEL income is less than 15,000 euro 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.
As a result of the review, the pension insurance company may adjust the YEL income by a maximum of 4,000 euro. In other words, the increase in the YEL insurance contribution may, at the most, be approximately 85 euro per month. Self-employed persons can adjust their YEL income more if their YEL income does not correspond to the value of their work input. If the YEL income of a self-employed person is correctly estimated, no changes will be made to the contributions.
How will the review proceed?
Before the review, we will send preliminary information to those customers whose YEL income will be reviewed this year.
“It is important for self-employed persons to keep their contact information up to date so that the information concerning the review is sent to the right address. This way, they have enough time to react and, if necessary, provide us with additional information”, says Assi Nyberg, YEL Product Manager for Veritas.
“If your contact information is up to date, you can wait for us to be in touch. The reviews will be carried out in stages throughout the latter part of the year.”
It is easy to update the contact information in Veritas’ online service.
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 you accept the proposed YEL income, 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. We will receive the information concerning your line of business and turnover from the tax authorities.
