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Pentikäinen criticizes idea of removing YEL income floor
The chair of the NCP YEL group called the YEL floor “artificial” in an interview with Kauppalehti.
Jukka Rantala, the rapporteur appointed by the Ministry of Social Affairs and Health, is due to deliver his report on the entrepreneur’s pension system (YEL) by 30 Nov. At the same time, the National Coalition Party (NCP) has founded its own YEL group, which will submit its own proposal to the rapporteur’s group.
The NCP YEL group is chaired by the parliamentary party vice chair, Pia Kauma MP, who shared her views on the entrepreneur’s pension reform in an interview with the newspaper Kauppalehti on 2 Oct. In the interview, Kauma criticized the existence of a minimum income for YEL purposes. A business owner must take out YEL coverage if their labour contribution to their business exceeds the minimum YEL income (at least €9,208.43 per annum).
“The €9,200 is quite artificial and dates back to the 1970s. All that’s happened is it’s been converted to euros and updated. For employee’s pensions, the payment obligation begins at around seventy euros. There’s no reason an entrepreneur’s pension should be so much more valuable,” Kauma told Kauppalehti.
Mikael Pentikäinen, the CEO of Suomen Yrittäjät, the Finnish SME association, is stunned by the NCP’s position on the YEL floor. He says that if there were no YEL floor, the smallest business owners would be hit, as well as those who run a side business in addition to regular employment.
“The NCP YEL group is advocating for big hikes to the pension contributions of the smallest business owners. For many business owners who are already hard pressed, that would mean a quick end to business,” Pentikäinen posted on X.
“If the (floor) were lowered, many small business owners who don’t currently pay any YEL contribution would have to pay it. At Suomen Yrittäjät, we believe that the floor should instead be raised so that a business owner always gets something for their money,” Pentikäinen continued.
“The view Kauma shared with Kauppalehti would mean significant YEL contribution hikes for tens of thousands of self-employed people. Instead, she should wait for the results of the report a minister of her own party commissioned and say what she thinks when we have information about different options.”
Kauma rushed to answer the criticism from Suomen Yrittäjät on X.
“The working group hasn’t completed its job yet. They were just intermediary assessments I gave because I was asked for them,” Kauma posted.
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