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Insurances

By law, entrepreneurs are obliged to take out self-employed person’s pension insurance (YEL). In addition, when hiring employees, entrepreneurs are obliged to take out insurance on their behalf in accordance with the Employees’ Pensions Act (TyEL) and Employment Accidents Act.

In certain lines of business, entrepreneurs are obliged to take out other types of insurance, including motor liability insurance, patient insurance and environmental insurance. Further information on statutory insurances is available on the website of the Ministry of Social Affairs and Health

A self-employed person must insure his or her personal pension rights under YEL (the Self-Employed Person´s Pensions Act). The following persons aged between 18 and 67 are insured under YEL:

  • self-employed persons and entrepreneurs
  • partners in a general partnership
  • responsible partners in a limited partnership
  • A person working for a limited company in a managerial position who alone owns over 30 percent or together with his/her family members owns over 30 percent of the company’s stocks or the number of votes derived from these stocks.

Statutory self-employed person’s pension insurance provides entrepreneurs not only with old-age pension, but also the possibility to vocational rehabilitation in the case of weaker capacity to work, and security in case of incapacity to work. The insurance also includes survivors’ pension and the possibility to retire on a part-time pension.

YEL insurance must be taken out after four months of self-employment covered by the Act, but at the latest within six months of setting up in business.

The Finnish Centre for Pensions supervises self-employed persons’ pension insurance and can take out YEL insurance on behalf of the entrepreneur, and at his/her cost even retroactively, if the entrepreneur has failed to take the insurance. For the period of negligence, the insurance premium can be raised up to double the original level.

A self-employed person’s pension insurance contribution rate is 23 per cent of the confirmed income on average. The percentage varies in accordance with the entrepreneur’s age. Start-up entrepreneurs are eligible for a 25 per cent discount of the YEL insurance contribution for a period of four years.

The pension institution checks the confirmed income, determines the pension contribution and any raise due to delayed insurance, if applicable, and takes care of collecting the premiums.

For further information on YEL insurance, see the website of the Finnish Centre for Pensions.

Patient insurance

Entrepreneurs engaged in health care or medical treatment must take out patient insurance to cover any bodily injuries sustained by patients in connection with health care. Further information is available on the Patient Insurance Centre website.

Environmental insurance

Environmental insurance must be taken whenever the business is subject to a permit by environmental authorities. Further information on environmental insurance is available on the Environmental Insurance Centre website.

Motor liability insurance

Motor liability insurance is a compulsory, statutory insurance for all motor vehicles and trailers used in traffic. Further information is available on the website of the Finnish Motor Insurers´ Centre.

Read more about statutory insurances from here.