If you’re planning to start working as a self-employed person, you can estimate your confirmed income for your insurance under the Self-employed Persons’ Pensions Act (YEL) using the calculator on Tyoelake.fi. Your pension provider also uses the calculator when it guides you on how to set your confirmed income. The calculator is open to all and requires no login. It’s available in English, Finnish and Swedish.
When you’re self-employed, your confirmed YEL income forms the basis of your YEL insurance and other social security. Both your pension amount and pension contributions depend on the amount of your confirmed income. In addition, your confirmed income affects your unemployment allowance and income during parental leaves. Under law, your YEL income must correspond to your work input and the wage you would pay to a person with similar qualifications who was hired to do your work.
Calculator helps assess your work input
The calculator in Tyoelake.fi recommends what your confirmed income should be (with a flexibility of +/- 30%). The recommendation is based on the average wage of the industry you have entered into the calculator and the turnover you have estimated for your self-employment. The calculator automatically utilises industry-specific wage data. It uses the information on turnover to estimate the scope of your self-employment.
The pension provider (or industry-wide pension fund) that you have selected to take out insurance with is always responsible for confirming your income. When confirming your income from self-employment, your pension provider also considers other available data depicting your work input, scope of self-employment, professional skills and value of work input.
The calculator uses the same computing service for the confirmed income recommendation that pension providers have used since August-September 2022 when they have handled pension insurance for the self-employed. The computing service and other instructions on setting the confirmed income replaces the guides on income from self-employment issued by the Finnish Centre for Pensions. The computing service will be improved based on user experience and the reform of the Self-employed Persons’ Pensions Act. However, the reform that took effect on 1 January 2023 does not immediately lead to changes in the operations of the calculator.
Confirmed income – what is it?
The confirmed YEL income is the monetary value of your work input when you are self-employed. Your confirmed income should correspond to the wage that you would pay to a person hired to do your work.
In addition to your pension amount, your daily allowance under health insurance and compensation under the voluntary worker’s occupational insurance are determined based on your confirmed annual income. In addition, your confirmed income affects your unemployment allowance and income during parental leaves.
Take out pension insurance from an earnings-related pension insurance company of your own choice (or an industry-wide pension fund if there is one in your industry).