Keep these points in mind when you receive a YEL proposal – this year’s reviews now well under way

The annual review of business owners’ YEL incomes began at the start of June.

The Orpo government is preparing a reform of the YEL system, but until that reform takes effect, YEL income reviews will continue under the current legislation.

The legislative reform that entered into force at the start of 2023 requires pension insurance companies to reassess business owners’ YEL income every three years. That means that for some business owners, this is their second review.

This year, pension insurers will review the YEL income of 67,000 business owners. The review applies to those whose YEL income was not reviewed in 2024 or 2025, whose YEL insurance has been in force for at least three years by some point this year, and whose YEL income has not been changed in three years.

Reviews will continue until the end of the year.

How the YEL review proceeds

RESPOND TO THE PROPOSAL

The pension provider sends a proposed YEL income to those whose income is being reviewed. The proposal is calculated on the basis of the median salary and turnover for the relevant sector, together with three years of turnover data obtained from the Tax Administration. The background data used in the proposal is the same across all pension providers.
Reviews use a shared YEL income calculator developed by the pension sector. The Finnish Centre for Pensions has updated the calculator. From the start of 2026, it caps the recommended YEL income at no more than 60% of a business owner’s turnover. Previously, the calculator capped the recommended YEL income at 100% of the business owner’s turnover.
A business owner has two weeks to respond to the proposed YEL income. The business owner can either accept the proposal as it stands or suggest a different YEL income with supporting reasons.
If the proposed YEL income does not reflect the value of the business owner’s labour input, it is worth explaining the factors that affect the value of that input.

PENSION PROVIDER’S DECISION

Once a business owner has responded to the proposed YEL income, the pension provider carries out what is known as an overall assessment of the YEL income. The business owner then receives a YEL income decision from the pension provider if the review results in a change to their YEL income.
If the business owner does not respond to the proposal at all, the new YEL income will be either the proposed figure or, at most, the current YEL income plus €4,000. A pension provider can raise a YEL income without the business owner’s consent by a maximum of €4,000 in a single review.

ENTRY INTO FORCE

If a business owner’s YEL income changes as a result of the review, the new YEL income takes effect from the start of the second month following the review. For example, if a business owner receives a proposed YEL income in June, the new YEL income takes effect from the start of August.

Source: Elo

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Toimitus

toimitus@yrittajat.fi