YELjärjestelmään

YELjärjestelmän refers to the Finnish earnings-related pension system, specifically the Yrittäjän eläkevakuutus, or entrepreneur's statutory pension insurance. This system is a mandatory social insurance scheme for entrepreneurs in Finland. Its primary purpose is to secure the pension of self-employed individuals.

Under the YELjärjestelmän, entrepreneurs are required to pay pension contributions based on their YEL income, which is defined as the value of their work. This income should reflect a reasonable salary for the work they perform as an entrepreneur. The contributions are paid to authorized pension providers.

The collected contributions fund the pensions of current retirees and also build up the pension capital for future retirees. The YELjärjestelmän is managed by the Finnish Centre for Pensions (Eläketurvakeskus), which oversees the system and provides guidance.

There are certain income thresholds and conditions that determine whether an entrepreneur is obligated to join the YELjärjestelmän. For instance, the minimum YEL income is set annually. The system aims to ensure that entrepreneurs have a comparable level of social security as salaried employees. The benefits provided by the YELjärjestelmän include old-age pensions, disability pensions, and survivor's pensions.