You are working through PalkkaOnline as a light entrepreneur (in Finnish: kevytyrittäjä), which means you are a subcontractor who gets paid via an invoicing service. Even though you work independently, you're treated as a wage earner for tax purposes, and your personal tax card is used.
🧾 What's the difference between a light entrepreneur and a regular employee?
A regular employee's pension is automatically paid by the employer (TyEL).
As a light entrepreneur, no pension is deducted from your payout by default.
Instead, you're responsible for your own pension contributions through a system called YEL – the Self-Employed Persons' Pension Insurance.
📈 When do I need YEL insurance?
You are required to take YEL insurance if:
✅ You are between 18–68 years old ✅ You work as a light entrepreneur for at least 4 consecutive months ✅ Your annual earnings exceed €9 423,09 (in 2026) ✅ In 2025, the threshold is €9,200.
If all of the above conditions are met, YEL becomes mandatory. Additionally, deductions for business expenses do not affect your YEL obligation. Note that if your annual work income remains below the threshold, YEL is not required, regardless of the number of months you have been active.
📅 How is the work income assessed?
Work income is assessed over a 12-month period, not per calendar year. The limit is therefore reviewed as a rolling 12-month period, not from January to December. Work income refers to the value of your personal work contribution and is not based on turnover or business expenses.
If you exceed the income limit and your activity continues for at least 4 consecutive months, YEL insurance is mandatory and must be taken out within six months of starting your activity.
💡 Why is YEL important?
Your YEL income affects:
Your future pension
Your sickness allowance
Parental benefits
Eligibility for housing allowance and other social benefits
All of these are calculated based on your reported YEL income (YEL-työtulo).
📲 How can I get YEL insurance?
If YEL becomes relevant for you, we can help you get it through PalkkaOnline.
Just contact us:
💬 Via chat
📧 By email: [[email protected]]