Yrittäjäeläkevakuutus

Yrittäjäeläkevakuutus, often abbreviated as YEL, is a mandatory social security insurance in Finland for entrepreneurs. It covers the entrepreneur's pension, accident, and unemployment. The purpose of YEL is to ensure that entrepreneurs have a sufficient income during their working years, as well as a pension in old age, and to provide financial security in case of illness, disability, or unemployment.

The contribution rate for YEL insurance is based on the entrepreneur's work income, known as the YEL-based salary. This salary is determined by the Finnish Centre for Pensions and should reflect the market value of the entrepreneur's work. The insurance is managed by private pension insurance companies. If the entrepreneur's income falls below a certain threshold, YEL insurance is not mandatory.

YEL contributions are tax-deductible. The pension accrued from YEL contributes to the entrepreneur's future retirement benefits. In case of disability, YEL can provide disability pension. Unemployment benefits can also be paid from YEL funds under certain conditions. Compliance with YEL insurance is monitored by the Finnish Social Insurance Institution (Kela). Failure to have valid YEL insurance when required can lead to penalties and back payments.