SY proposal on YEL income put before Parliament

The changes we proposed would improve YEL policyholders’ equitable treatment.

The 2023 entrepreneur pension or YEL reform included a transitional period which affected YEL policies that existed when the law entered into force. In the YEL income reviews carried out every three years, income for YEL purposes, known as YEL income, can only be raised by €4,000 on the first review and another €4,000 on the second review (from the YEL income confirmed in the first review).

The transition period has been sharply criticized by business owners with YEL policies which entered into force on or after 1 Jan. 2023. The 2026 YEL income reviews will also be the first for business owners who have taken out YEL policies after the amendment to the law entered into force.

“They have no maximum increase cap, so for these business owners, there is no limit to how much the pension provider can increase their YEL incomes,” says Harri Hellstén, Labour Market Affairs Manager at Suomen Yrittäjät, the Finnish SME association.

That means pension providers could increase YEL incomes by much more than €4,000.

“We believed something needed to be done, as the situation was not good in terms of equitable treatment of business owners, and could lead to very difficult situations for people starting their own businesses,” Hellstén says.

Change in force from start of 2026

Suomen Yrittäjät proposed to the ministry that the maximum increase cap for YEL incomes be expanded to cover all YEL policyholders during the transition period laid down by the Act, that is, until the end of 2028. That would mean all policyholders would be treated equally.

“Before we get a bigger YEL reform in this country, the treatment would be equitable for everyone and YEL payments would not rise exorbitantly.”

Now, the Government will propose the change advocated by Suomen Yrittäjät to Parliament. Hellstén is happy that Suomen Yrittäjät tackled the problem.

“This is a direct result of the advocacy of Suomen Yrittäjät. We spoke about the issue during the Government’s mid-term review in the spring and expressed our hope for a quick implementation of a change. Thanks to the Government’s fast action, the change will enter into force right at the start of 2026.”

Are you a Suomen Yrittäjät member yet? Read about member benefits and advantages