Social Security for Entrepreneurs in Finland
Many people planning to run a business in Finland are interested in how they can protect their social security rights as an entrepreneur. The Finnish social security system includes various forms of income-related benefits for self-employed people and entrepreneurs, including pensions, health insurance, accident insurance, unemployment insurance, parental benefits and other forms of protection.
However, unlike employees, an entrepreneur's social security protection depends to a large extent on their own decisions. A key element of the system is mandatory YEL insurance, with the confirmed YEL income affecting the amount of pension payments and a number of social security benefits.
YEL insurance: the basis of pension and social security
In Finland, entrepreneurs are responsible for arranging mandatory pension insurance in accordance with the Self-Employed Persons' Pensions Act — YEL (Yrittäjän eläkelaki 1272/2006).
YEL insurance provides pension coverage for entrepreneurs and also affects social security in various life situations, such as illness, unemployment and parental leave.
It is important for entrepreneurs to understand how YEL affects their social security in different life situations. Official information on entrepreneurs' social security is available at Työeläke.fi.
When is YEL insurance required?
YEL insurance is mandatory if the entrepreneur meets the established conditions:
- is at least 18 years old but has not yet reached the age at which the YEL insurance obligation ends for the year of birth (68, 69 or 70);
- works as an entrepreneur or light entrepreneur (kevytyrittäjä);
- lives in Finland;
- carries out entrepreneurial activity for at least four months without interruption after reaching the age of 18;
- has confirmed annual income from entrepreneurial activity of at least €9,423.09 in 2026.
YEL insurance must be taken out within six months from the start of the entrepreneurial activity if the conditions for mandatory insurance are met.
Please note: YEL may also apply to a foreign entrepreneur carrying out entrepreneurial activities in Finland.
What is YEL income?
YEL income is not necessarily the entrepreneur's actual profit or the amount they pay themselves from the company. It is a monetary estimate of the value of the entrepreneur's own work.
It should correspond approximately to the value of the entrepreneur's work, that is, to the salary that would have to be paid to another person for performing similar work. When determining YEL income, factors such as the nature and extent of the entrepreneur's work, their professional skills and the level of pay in the relevant industry are taken into account.
Why is YEL important?
YEL income affects not only the entrepreneur's future earnings-related pension but also the amount of various social security benefits, such as sickness benefits, parental benefits and unemployment security.
Insurance contribution rate (2026): 24.40% of the confirmed YEL income.
Discount for new entrepreneurs: during the first 48 months of entrepreneurial activity, the insurance contribution is reduced by 22%.
Maximum threshold: in 2026, the maximum confirmed YEL income is €214,000 per year.
Entrepreneurial status: full-time and part-time activity
Eligibility for unemployment support is determined with reference to the Unemployment Security Act (Työttömyysturvalaki 1290/2002).
When entrepreneurial activity is started while receiving unemployment benefits, a four-month period applies during which the entrepreneurial status does not prevent the payment of unemployment support. After four months, the KEHA Centre assesses whether the activity is full-time or part-time, or whether it has ended based on information about the business.
Full-time entrepreneurship (Päätoiminen yrittäjyys): if the amount of work required by the business objectively prevents the entrepreneur from accepting full-time employment, the entrepreneur is considered fully employed and is not entitled to unemployment benefits.
Important: the assessment is based on the amount of work required to run the business, not on the profitability of the business. If the business requires substantial work, unemployment benefits are not granted even if the business is making a loss.
Part-time entrepreneurship (Sivutoiminen yrittäjyys): if the activity is considered part-time, the entrepreneur may receive adjusted unemployment benefits while continuing the business, provided that all other eligibility conditions are met.
Unemployment protection: types of benefits and reforms
As of 1 May 2026, the previous basic unemployment benefits provided by Kela (peruspäiväraha and työmarkkinatuki) have been replaced by a single basic benefit — Yleistuki.
When becoming unemployed, an entrepreneur registers as an unemployed jobseeker through Työmarkkinatori and then applies for the relevant benefit from the appropriate organisation.
| Type of benefit |
Paid by |
Who is eligible |
| Ansiopäiväraha (earnings-related unemployment allowance) |
Yrittäjäkassa |
Members of the fund who meet the required insurance period |
| Yleistuki (basic unemployment benefit) |
Kela |
People who are not entitled to ansiopäiväraha and meet the conditions for receiving Yleistuki |
Important legislative rules and changes
Basic rate of Yleistuki (2026): the basic amount of the Kela benefit is €37.21 per day.
Income assessment under Yleistuki: income from entrepreneurial activity is taken into account when calculating the benefit. Every euro of income reduces Yleistuki by 50 cents.
Abolition of the exempt income threshold: the previous €300 exempt income threshold (suoja-osa) was abolished on 1 April 2024.
Abolition of child increases: lapsikorotukset paid with unemployment benefits were abolished on 1 April 2024.
Insurance with Yrittäjäkassa
To receive an earnings-related unemployment allowance (ansiopäiväraha), an entrepreneur must be a member of Yrittäjäkassa — the Entrepreneurs' Fund and meet the applicable conditions.
Minimum YEL threshold: for unemployment insurance coverage to apply, the confirmed YEL income must be at least the statutory minimum (työttömyysturvan YEL-alaraja). In 2026, this is €15,481 per year; the basic YEL threshold of €9,423.09 is not sufficient.
Insurance income requirements: the income insured through the unemployment fund cannot exceed the income confirmed under mandatory pension insurance:
- YEL — for sole traders, self-employed people and light entrepreneurs;
- MYEL — for farmers and forest owners under the Farmers' Pensions Act (MYEL 1280/2006);
- TyEL — for employee-owners or family members of an entrepreneur who are employed by the company.
Insurance period requirement (15 months): to receive an earnings-related unemployment allowance, the entrepreneur must be a member of Yrittäjäkassa and meet the required period of entrepreneurial insurance — at least 15 months during the previous 48 months before unemployment.
Current membership requirements and ansiopäiväraha calculation rules can be checked directly on the Yrittäjäkassa website.
Additional social benefits and life situations
Detailed information on various life situations and social security benefits for entrepreneurs is available on the official websites of Kela and Työeläke.fi.
Last updated: 9 August 2026
