YEL income review rounds under way again

The reviews of business owners’ YEL incomes are under way again.

Following the YEL pension insurance reform, business owners’ incomes for YEL purposes, also known as YEL incomes, are being reviewed every three years.

This year, under review are business owners whose YEL income is under €25,000 per year, who were not under review last year, and whose YEL incomes have not changed substantially in the past three years.

One pension provider, Elo, says on its website that reviews began in June and will continue until the end of the autumn.

A new version of the YEL calculator was deployed at the end of May.

“In future, the calculator will better consider a business owner’s leading position in the company, as well as ownership information. If a serial entrepreneur is a member of the board of a company, but does not own any shares in the company, that company will not be considered in the YEL income proposal. Errors will become less frequent in future as the quality of the calculator improves.” Those were the words of Minna Hakkarainen, Director of Insurance Services at pension provider Ilmarinen, to Yrittäjät.fi in May.

In the two previous review rounds, a business owner’s annual YEL income could be raised by a maximum of €4,000.

The review begins with the business owner receiving a proposal for a new YEL income from their pension provider. If the business owner believes that the proposed YEL income does not correspond to their view of their labour contribution’s value, or that other circumstances have changed substantially, they have two weeks to reply and apply for another level of YEL income, as well as to state their reasons. After that, the pension provider, having considered all the circumstances, will make a YEL income decision. If the business owner does not respond to the pension provider’s proposal, their YEL income may be increased by a maximum of €4,000.

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