YELtyötulo

YELtyötulo is the estimated annual income used as the basis for Yrittäjän eläkevakuutus (YEL) contributions in Finland. It represents the level of activity and potential earnings of a self-employed person and is distinct from actual profits or taxable income.

The YEL-työtulo determines the size of the social security contributions a self-employed person must pay, and it influences future pension accrual as well as access to certain benefits, such as sickness allowances and other forms of social protection connected to self-employment. The higher the YEL-työtulo, the higher the premium, but also the higher the pension and benefit rights; a lower YEL-työtulo reduces premiums at the cost of smaller future benefits.

Entrepreneurs themselves choose the YEL-työtulo when starting a business or when the activity's scope changes. It is not necessarily the same as real net income or taxable income, and it can be adjusted. The YEL-työtulo is reviewed periodically, typically annually, and adjustments can be made if the business situation changes. The base is subject to statutory minimums and maximums defined by Finnish pension authorities; these thresholds ensure a basic level of coverage while also establishing an upper cap for premium calculation.

Compared to actual earnings, the YEL-työtulo functions mainly as a financial planning tool and a social security instrument, shaping both current premiums and future entitlements. Incorrectly low or high values can lead to underfunding of future pension rights or unnecessarily high upfront costs, so many entrepreneurs consult financial advisors or their pension provider when setting or adjusting the YEL-työtulo.

See also: Yrittäjän eläkevakuutus (YEL).