Newly self-employed

Have you just started a business in Finland? Or are you dreaming of becoming an entrepreneur in Finland? Varma’s YEL insurance is the basis for a newly self-employed person’s social security. YEL insurance accrues pension and is the basis for other social security. As newly self-employed, you get a 22% discount on your YEL contributions for the first four years.

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YEL insurance is the most important insurance for the newly self-employed

When starting up a business on your own, make sure you have a solid foundation. Take out YEL insurance here or call our sales at 010 244 1010 (from Monday to Friday between 8:00 and 16:00).

YEL insurance is statutory pension insurance for the self-employed. You cannot replace YEL insurance with voluntary pension insurance.

Have a closer look at whether you need YEL insurance

How much does YEL insurance cost?

YEL insurance is based on YEL income. YEL income refers to the monetary value of your own work input on an annual level. YEL contributions are fully deductible either from your personal income tax or from your company’s taxable income.

When you take out YEL insurance, we will confirm your annual YEL income corresponding to your work input. We take into account factors such as your company's turnover estimate and the salary level in your sector when confirming your YEL income.

Discount for a newly self-employed person

When you start your self-employment, you will get a 22% discount on your YEL insurance contributions for the first four years! The discount can be applied for no more than two separate periods. If you are taking out YEL insurance for the first time and it is initially valid for 10 months, for example, you will still have 38 months of the discount left. You can use it if you take out YEL insurance again in the future.

What should a new entrepreneur know about YEL insurance?

Have you just started a business or are you dreaming of starting one? This guide is just for you!

YEL insurance, or self-employed persons' pension insurance, is one of the most important matters for a new entrepreneur. It is the most essential insurance for the entrepreneur. We've put together an easy-to-follow guide on YEL insurance with all the key information you need to get started on your entrepreneurial journey.

Open the YEL guide for the newly self-employed

Something on your mind about YEL insurance? See the answers to frequently asked questions here!

YEL insurance is a self-employed person's personal pension insurance, meaning you need YEL insurance if you work as an entrepreneur in your own company or as a light entrepreneur. With YEL insurance, a self-employed person accrues pension and takes care of their other social security.

TyEL, on the other hand, is pension insurance that an employer takes out for their employees. If you have an employee and you pay them wages or a salary, you must take out TyEL insurance. TyEL insurance accrues pension for the employee.

Impact of company form on pension insurance: YEL or TyEL?

Different rules apply to the different company forms as to which pension law a self-employed person or a self-employed person's family member is insured under. Sometimes, for example, a family member working for the company needs his or her own YEL insurance. This depends on the company form and the family member's work and position in the company.

Learn about the impact of company form

YEL insurance is mandatory insurance for the self-employed. In other words, it is statutory insurance. If you work as an entrepreneur or a light entrepreneur and you are between the ages of 18 and 69, you are obligated to take out YEL insurance for yourself if your self-employed activities last for at least four months.

If your self-employed activities last less than four months, or if they are very small-scale activities and the value of your work input is low (less than EUR 767 per month in 2025), you do not have to take out YEL insurance.

You must take out YEL insurance when you start your business activity. The insurance starts from the day you start working in your company to the extent that the insurance obligation is met, i.e. your YEL income exceeds EUR 767 per month on average (in 2025). In general, the insurance should start from the day you start working.

You have six months to take out insurance. This is called the six-month arrangement period. However, the start date of YEL insurance is always the start date of the activity to the extent that the YEL insurance obligation is met.

Read more about the YEL obligation

Take out YEL insurance easily online

YEL insurance can be taken out retroactively. Keep in mind, however, that if you take out YEL insurance, for example, three months after the date when you started your business activities, you will also have to pay the insurance contributions retroactively from the date when your business activities started.

And if you take out YEL insurance only after the half-year arrangement period, you might end up having to pay not only the regular YEL contribution but also a penalty for neglecting to arrange pension cover. The penalty is at least 10 per cent of the amount of the YEL contribution during the period of neglect. The longer the retroactive period of your YEL insurance is, the more YEL contributions you will have to pay at once.

Since YEL is statutory insurance for the self-employed, the Finnish Centre for Pensions monitors whether entrepreneurs take out the insurance or not. If you do not take out YEL insurance, the Finnish Centre for Pensions could ultimately take out YEL insurance for you. If that happens, you might end up having to pay not only the regular YEL contribution but also a penalty for neglecting to arrange pension cover. The penalty is at least 30 per cent and at most 100 per cent of the amount of the YEL contribution during the period of neglect. The State Treasury confirms the amount of the penalty for neglecting to arrange pension cover.

YEL insurance cannot be directly frozen but it can be terminated, and new insurance can be taken out again later. When your self-employed activities are interrupted for a longer period of time, let us know so that we can terminate your YEL insurance. YEL insurance can be terminated retroactively or you can inform Varma of the termination beforehand. The last day when your YEL insurance will be valid is your last working day. When you later resume your work as an entrepreneur, take out new YEL insurance.

Light entrepreneurship has increased dramatically in recent years. Light entrepreneurs employ themselves and take care of invoicing through an invoicing service company. Light entrepreneurship makes it easy, for example, to try out part-time self-employment. As a light entrepreneur, you also need YEL insurance.

YEL insurance also makes up the basis for light entrepreneurs’ social security. Also for light entrepreneurs, the YEL income is used as the basis for determining daily sickness allowance and parental allowance, as well as unemployment benefits.

Three great reasons to take out YEL insurance with Varma

Easy-to-use online service

You can conveniently manage your YEL insurance matters in Varma Online Service when it suits you best.

Friendly and professional service

Our experts support you in navigating all the twists and turns of your life as a self-employed professional. Our friendly customer service is easy to reach by phone, through chat, or in Varma Online Service.

See Varma's contact information

Flexible payment arrangements

If you ever find yourself in need of flexible payment arrangements we will find a solution for your situation together. Varma has its own knowledgeable collection advisors, so please don't hesitate to contact us!

Have you just started a business in Finland? Take a look at the following articles:

Help with using our services

Take care of your YEL matters online

In our online service, you can, for instance

apply for a change in your YEL income
view your past and future YEL contribution
request an extended term of payment for an invoice

What to do when...

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