YELtyötuloksi

YELtyötuloksi is the annual earned income used as the basis for calculating YEL contributions in Finland. YEL stands for yrittäjän eläkevakuutus, the pension and social security insurance for self-employed persons. The YEL-työtulo is the estimated income from entrepreneurial activity for the year and serves as the basis for computing the YEL insurance premium and for earnings-related pension accrual. It also influences other social security benefits tied to income.

Determination and limits: The self-employed person chooses a YEL-työtulo within statutory minimum and maximum thresholds that are revised annually. The amount should reflect expected yearly income from business activities. Higher työtulo results in higher contributions but also higher potential pension and other benefits; lower työtulo yields lower contributions and smaller pension accrual. Underreporting can reduce benefits, while overreporting increases contributions without automatic benefit enhancements.

Practical considerations: The YEL-työtulo is typically reviewed and adjusted as part of annual planning and when income expectations change, with changes reported to the YEL insurer. If income changes during the year, adjustments are generally made for the following year rather than mid-year. The YEL-työtulo is important for long-term pension planning and for understanding the level of social protection available through self-employment.