Self-Employed Person’s Pensions Act (YEL)

The pension insurance for the self-employed is based on their confirmed income under the Self-employed Persons’ Pensions Act (YEL). A self-employed person must take out pension insurance under YEL on their own. The insurance is mandatory when the self-employed person meets the conditions for the insurance. The insurance must be taken out within six months from starting self-employment, either with an earnings-related pension insurance company or a pension fund, if one exists in the field in question. A person is considered self-employed if they do not work under an employment or service agreement. Other preconditions for being covered by the Act include:

• the self-employed person is between 18-69 years old (for those born in 1957 or earlier, the insurance obligation ends at age 68, for those born between 1958 and 1961, the insurance obligation ends at age 69, and for those born in 1962 or later, the insurance obligation ends at age 70;
• the person has worked as a self-employed person for at least four months; and
• the estimated annual earnings from work amount to at least 8,575.45 euros (in 2023).