Visit fondia.com

primary_areas

    The content concerns Finnish legislation.
     

    YEL-Income

    The pension institute affirms the YEL income from work upon the self-employed person’s request. In practice, the affirmation of the earned income means the pricing of the self-employed person’s work contribution. YEL income is therefore not the same as the taxable income or profit of the business. The earned income should correspond with an amount that would be paid to an employee of the same skill to carry out the same work. The determination of the earned income figure is naturally also affected by the self-employed person’s ability to work, the turnover of the business, the size of the business and other relevant factors. Whether the business is the self-employed person’s principal or secondary business is also relevant.

    The Finnish Centre for Pensions, the Federation of Finnish Enterprises and pension insurance companies dealing with insurances for self-employed persons have in cooperation prepared guidelines for the assessment and determination of the earned income.

    Significant changes affecting the affirmed earned income must be notified to the pension institute. The earned income is, however, not adjusted due to temporary changes or interruptions. The pension institute may also on its own initiative alter the earned income, but not retroactively. Adjustment of the earned income may become relevant in connection with e.g. when the business grows or diminishes, when the contribution of the entrepreneur changes temporarily or for the time being for the reason of maternity leaves, for example. It is recommendable to contact the pension insurance company providing the insurance cover in respect of longer family and sickness leaves in order to choose the best option available for the self-employed person.

    Merely belonging within the scope of YEL does not guarantee unemployment security.

    A self-employed person has a right to unemployment security if the annual earned income has been confirmed to a certain level (in 2010 at least 8,520 euros). It is also possible to receive part-time retirement if the annual earned income exceeds certain level (in 2010 at least 13,551.19 euros a year).

    The maximum amount for the earned income was 153,875 euros in 2010.

    Therefore, it is important that the amount of the earned income is determined correctly.

    External sources

    • Pensions for the self-employed⁠

    We law your business.

    Privacy⁠Privacy⁠
    Cookies⁠Cookies⁠
    Terms of Use⁠Terms of Use⁠
    Contact us⁠Contact us⁠

    Copyright © Fondia 2022. All rights reserved.