Toiminimi, and dropping YEL

[peterv22]

Hi,
I have a toiminimi and last year I made about average finnish salary worth of income. This year though, I don't think I will make profit over the 7 557,18.

(the 7 557,18 is a threshold for YEL paymetns for 2016 as mentioned here):

http://www.ilmarinen.fi/yrittaja/yritta ... s/tyotulo/

When I don't pay YEL, it makes sense that there will not be any pension contribution for me this year. I understand that.

My question is - what else happens when I don't pay YEL (having income less than 7557,18 in 2016)? Will I lose KELA? Is there something else?

Thanks for answering!

[betelgeuse]

My question is - what else happens when I don't pay YEL (having income less than 7557,18 in 2016)? Will I lose KELA? Is there something else?

You will not loose Kela. However, any earnings related benefit (like sickness allowance) will be according to the minimum. Strictly speaking YEL is tied to revenue or profit. It's what you would pay someone as a salary to do the same work. In practice they do not seem to monitor this much.

[joepublic]

Small, but important type there? It should be Strictly speaking YEL is NOT tied to revenue or profit. Right?

[betelgeuse]

Small, but important type there? It should be Strictly speaking YEL is NOT tied to revenue or profit. Right?

Correct. Thanks.

[peterv22]

You will not loose Kela. However, any earnings related benefit (like sickness allowance) will be according to the minimum. Strictly speaking YEL is tied to revenue or profit. It's what you would pay someone as a salary to do the same work. In practice they do not seem to monitor this much.

Thanks for answering! The thing is that the earning-related benefits will be according to minimum even if I pay the minimum YEL (income level ~7500 EUR), which is ~1400 EUR per year.

To be sure, I will call to the ETK (Finnish centre for pensions) and I will ask in KELA. I will post here what I learn.