Skip to content

Note: The texts have been translated using AI. As a result, there may be content errors on the pages.

Log in to

Freelancer's occupational pension and accident insurance

In Finland, an occupational pension is part of the statutory pension system. Its purpose is to provide a secure income when a person leaves working life, for example as a result of old age or disability.
Loading...

Occupational pension

The occupational pension is accrued on all earnings. In the case of invoiced freelancers and self-employed persons, an earnings-related pension accrues if they pay YEL or TyEL contributions.

The retirement age is determined by the year of birth.

Forms of pension:

  • Old-age pension (normal retirement age)
  • Disability pension (in the event of a substantial loss of working capacity)
  • Partial old-age pension (you can draw part of your pension before the actual retirement age)
  • Family pension (after the death of a spouse or parent)

Attention!

An occupational pension is based on your own earnings and is different from a state pension. The state pension and the guarantee pension provide income security if you have not accumulated sufficient earnings.

It is important for a freelancer to understand how pensions accumulate in different types of work

  • A freelancer in paid employment automatically receives a pension. The employer charges a TyEL contribution on your salary, from which the pension will accrue during your working career.
  • A freelancer working as a self-employed person or in a commissioned relationship will only accrue a pension if he or she is insured under the YEL scheme.

What is YEL?

YEL insurance, or self-employed persons’ pension insurance, is a compulsory insurance that is the basis of social security and pension cover for self-employed persons in Finland.The YEL insurance accumulates a pension and provides financial security in case of disability or unemployment.YEL insurance is personal and compulsory for all entrepreneurs who meet certain conditions.YEL insurance can be taken out with an occupational pension company or a pension fund.

Are you liable for YEL?

You are obliged to take out YEL insurance if the conditions below are met.
  1. Your billable earned income will be at least €9 208.43 per year in 2025. Yel income refers to the monetary value of your contribution during the year. If you invoice through billing services, this is your income threshold net of VAT. Your earned income is therefore your estimate of your work input in the company and should correspond to a wage that can be considered as a reasonable remuneration for equivalent work.

    1. Your continuous period of self-employment must be at least 4 months.
      You must be self-employed for at least 4 months without interruption to qualify for YEL insurance. Seasonal self-employment is also covered if it is recurrent.

    1. You work in your company.
      Simply owning a business does not require YEL insurance, but you must be actively involved in the running of your business. Even if you are self-employed on a secondary basis, you must take out self-employed pension insurance if your activities meet these conditions. If you work as an employee at the same time, your employer pays contributions under the Employees’ Pension Act on the salary you receive. So a freelancer may well be both liable for YEL and insured for TyEL at the same time.

    1. Your age range is 16-68 years.
      The insurance obligation starts at the beginning of the calendar month following the month in which you turn 18. It continues until the end of the month in which the entrepreneur turns 68.
      The upper age limit for insurance increases in stages as follows:
      – 68 years for those born in 1957 or earlier
      – 69 years for those born between 1958 and 1961
      – 70 years for those born in 1962 or later

Note. YEL income affects, for example, sickness allowance, parental allowance and unemployment benefit.

Read about YEL insurance on the Pension Security Centre's website Read more about YEL insurance on If's website Read more about pension insurance and the companies that sell it Check your occupational pension here

Freelancer accident insurance

One of the most important insurances for freelancers is accident insurance. The employee is automatically insured by the employer, but the freelancer must arrange and pay for his/her own insurance for non-employment work. There is no compulsory accident insurance for freelancers, but those working in the arts and culture sector often work in situations where the risk of accident is ever-present, and any prolonged absence due to an accident can pose significant financial challenges.

Voluntary work-related accident insurance for freelancers and self-employed persons may cover, among other things:
    • Accidents at work and commuting

    • Medical expenses

    • Rehabilitation and daily allowances

    • Possible permanent disability or death

When you take out insurance, it’s a good idea to compare insurance companies, terms and prices. Decide whether you want accident insurance to cover only your working time or also your leisure time. Insurance companies also offer so-called full-time accident insurance. The price may not be significantly different from a policy that only covers working time.

You may already be insured as a member of your own trade association. Check your membership benefits before you buy insurance elsewhere. Teme has purchased If leisure accident and travel insurance for its members. In addition to the insurance paid by Teme, you can ask If for discounts on other insurance. When requesting a quote from If, remember to mention your membership of Teme.

Freelancers should consider whether they are using tools in their work that would also need to be insured. Insurance can protect the equipment against damage or theft, for example.