YEL Guide

#What is YEL — and why does it exist?

YEL, the entrepreneur's pension insurance, is the statutory pension cover for people who work in an entrepreneurial capacity — the equivalent of an employee's pension, but arranged by yourself. It's about more than retirement: your confirmed YEL income also determines the level of your sickness allowance and parental allowance. That's why YEL is a safety net, not just an expense.

YEL applies to light entrepreneurs just as it does to other entrepreneurs: what matters isn't the business form but the continuity of the work and the level of income. Occasional gigs usually don't require YEL — ongoing, sufficiently profitable work does.

#When does YEL become mandatory?

The obligation to take out YEL arises when your entrepreneurial work continues uninterrupted for at least four months and your estimated YEL income exceeds the annually confirmed lower limit. This limit is reviewed every year — you can check the current amount in the app or with the pension provider.

With Truster, you don't need to track the limit yourself: the app monitors your invoicing and lets you know when YEL is becoming relevant. At that point, you can activate the insurance straight from the app in just a few minutes — with Ilmarinen as our partner, no separate errands or paper forms required.

#YEL income: the most important figure you decide yourself

Your YEL contributions and coverage aren't based directly on what you earn, but on your confirmed YEL income — an estimate of the value of your work. Setting it too low means lower contributions, but also weaker sickness, parental, and pension cover. You can update your YEL income whenever your situation changes.

A good starting point: set your YEL income at the level you'd pay someone else to do your job for you. The app helps you estimate it, and YEL contributions are tax-deductible — with Truster, the deduction is factored into your pay automatically.

#Three common misconceptions

"YEL is optional." It's not — once the continuity and income conditions are met, the insurance is statutory, even for light entrepreneurs. "I'd rather pay the minimum." A minimum YEL income means minimum cover if you get sick or take family leave — the savings can end up costing you dearly. "It doesn't apply to me because I invoice through a service." The invoicing channel has no bearing on your YEL obligation; the nature of the work is what counts.