YEL insurance for new entrepreneurs 2026
YEL is the self-employed person’s mandatory pension insurance, and the contribution in 2026 is 24.40% of YEL work income (työtulo). A new entrepreneur gets a 22% discount for the first 48 months, making the effective rate 19.03%.
What matters is the level of work income: it is not your salary or turnover, but the value of your work input — and it is the basis of all your social security.
- 24.40%
- YEL of work income
- 19.03%
- new entrepreneur (48 mo)
- €9,423.09
- work-income floor
- €214,000
- work-income cap
How much does YEL cost? (examples)
| Work income/year | Contribution 24.40%/yr | New entrepreneur 19.03%/yr |
|---|---|---|
| €15,000 | €3,660 | €2,855 |
| €25,000 | €6,100 | €4,758 |
| €40,000 | €9,760 | €7,612 |
The insurance is mandatory once the business has run for over 4 months and work income exceeds the floor of €9,423.09. The YEL contribution is fully deductible in taxation.
Why does the level of work income matter?
Work income determines both pension accrual and almost all earnings-related benefits: sickness allowance, parental allowance and unemployment security. Setting it too low reduces these benefits too, just when you need them.
Calculators for this topic
FAQ
How much is the YEL contribution in 2026?
24.40% of work income. A new entrepreneur gets a 22% discount for the first 48 months, making the effective rate 19.03%.
What is YEL work income (työtulo)?
An estimate of the value of your work input — not the salary you withdraw or your turnover, but the pay your work should command. It is the basis of the contribution and of all your social security.
Is the YEL contribution tax-deductible?
Yes, it is fully deductible — either from business income or in your personal taxation.