Developing the pension system for the self-employed (YEL)
The government is aiming to improve the pension system for the self-employed (YEL). On 19 December 2024, the Ministry of Social Affairs and Health appointed Dr Jukka Rantala as an independent assessor to identify areas for improvement. The review will seek solutions to improve the way pension contributions and the confirmed income that forms the basis for pensions are determined for self-employed persons. The review is scheduled to be completed by 30 November 2025.
As part of his work as assessor, Rantala will also consider other necessary changes to improve the system. However, the review will not address the government programme’s proposal to centralise YEL contributions to Mela.
The decision on the appointment sets out the following aims for the review:
- Identify problems with the current method of defining the confirmed income and present alternative solutions.
- Proposing improvements for determining the confirmed income and assessing its impact while taking into account the differences in income formation among various groups of self-employed people.
- Examine alternative approaches to funding.
- Make any other necessary recommendations for the development of YEL, as deemed appropriate by the assessor.
On 19 December 2024, the Ministry of Social Affairs and Health (STM) appointed Dr Jukka Rantala as the independent assessor.
The assessor’s term will run from 1 January to 30 November 2025. The final report must be submitted to the Ministry by no later than 30 November 2025.
A steering group appointed by the Ministry will support the review. The group includes representatives from the Central Organisation of Finnish Trade Unions (SAK), the Finnish Confederation of Professionals (STTK), the Confederation of Unions for Professional and Managerial Staff in Finland (Akava), the Confederation of Finnish Industries (EK), the Local Government and County Employers (KT), the Federation of Finnish Enterprises, the Micro and Solo Entrepreneurs Association, The Finnish Pension Alliance TELA, Finance Finland, the Finnish Centre for Pensions, the Finnish Tax Administration, the Ministry of Finance, and the Ministry of Social Affairs and Health.
Director Allan Paldanius represents the Finnish Centre for Pensions in the group.
The most recent changes to the Self-employed Persons’ Pensions Act, introduced by the government led by prime minister Sanna Marin, came into force on 1 January 2023. The reforms aimed to improve the implementation of the law, ensuring that the confirmed income of self-employed individuals more accurately reflects the value of their work input. However, the principles for determining YEL income were not affected by these changes.
Pension insurance for the self-employed is provided by pension insurance companies. Self-employed persons in the pharmacy and forestry sectors may take out insurance from industry-wide pension funds.
The Finnish Centre for Pensions provides objective expertise, research and statistical information on the pension system for the self-employed. Upon request from the assessor, we conduct bespoke data collection and research.
Director Allan Paldanius represents the Finnish Centre for Pensions in the review’s steering group appointed by the Ministry of Social Affairs and Health.
In our communications, we use research, statistics, reports and reviews that we have produced.
Read more on Etk.fi:
- For questions about developing YEL, contact managing director Mikko Kautto.
- For legal questions about the current Self-employed Persons’ Pensions Act (YEL), contact lawyer Anniina Alaluusua-Listola.
- For questions about pension systems for self-employed persons in other countries, contact liaison manager Mika Vidlund.
- For questions about your own confirmed income for self-employment, contact your pension insurance company or pension fund.
