Do I need YEL insurance?

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muskrat
Posts: 13
Joined: Sat May 09, 2020 3:01 am

Do I need YEL insurance?

Post by muskrat » Wed Nov 24, 2021 11:02 am

Hi all,

I recently received a residence permit based on family ties (spouse is a Finnish citizen) and I'm trying to find out if I need to get pension insurance.

About me:

- part owner of a company (Oy) together with my spouse (we own more than 50% of the company)
- I am not earning any income from the company yet and we do not have any employees
- I am otherwise "self employed" and supporting myself at the moment with cash savings and investment income (this is my only income)

I have read that I need YEL insurance if I "work in my own company" and my "confirmed income from work is at least 8,063.57 euros per year" (source). However, it's not clear if my investment income would be included in this context. If not, then my eligible income would be zero and I would not be required to have YEL insurance.

Can anyone clarify this? Thanks!



Do I need YEL insurance?

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FinlandGirl
Posts: 896
Joined: Sat Nov 09, 2019 10:43 am

Re: Do I need YEL insurance?

Post by FinlandGirl » Wed Nov 24, 2021 9:44 pm

muskrat wrote:
Wed Nov 24, 2021 11:02 am
I recently received a residence permit based on family ties (spouse is a Finnish citizen) and I'm trying to find out if I need to get pension insurance.

About me:

- part owner of a company (Oy) together with my spouse (we own more than 50% of the company)
- I am not earning any income from the company yet and we do not have any employees
- I am otherwise "self employed" and supporting myself at the moment with cash savings and investment income (this is my only income)
With "self employed" you mean "unemployed"?
muskrat wrote:
Wed Nov 24, 2021 11:02 am
I have read that I need YEL insurance if I "work in my own company" and my "confirmed income from work is at least 8,063.57 euros per year" (source). However, it's not clear if my investment income would be included in this context. If not, then my eligible income would be zero and I would not be required to have YEL insurance.
Your investment income is something like shares you own where you report the dividends as capital income to Vero in your personal taxation, or a business abroad where you are owning enough of the company that Vero might want to tax the whole business?

I would recommend you discuss your situation with a (free) business advisor where you are living:
https://uusyrityskeskus.fi/en/homepage/

muskrat
Posts: 13
Joined: Sat May 09, 2020 3:01 am

Re: Do I need YEL insurance?

Post by muskrat » Wed Nov 24, 2021 10:01 pm

FinlandGirl wrote:
Wed Nov 24, 2021 9:44 pm
muskrat wrote:
Wed Nov 24, 2021 11:02 am
I recently received a residence permit based on family ties (spouse is a Finnish citizen) and I'm trying to find out if I need to get pension insurance.

About me:

- part owner of a company (Oy) together with my spouse (we own more than 50% of the company)
- I am not earning any income from the company yet and we do not have any employees
- I am otherwise "self employed" and supporting myself at the moment with cash savings and investment income (this is my only income)
With "self employed" you mean "unemployed"?
muskrat wrote:
Wed Nov 24, 2021 11:02 am
I have read that I need YEL insurance if I "work in my own company" and my "confirmed income from work is at least 8,063.57 euros per year" (source). However, it's not clear if my investment income would be included in this context. If not, then my eligible income would be zero and I would not be required to have YEL insurance.
Your investment income is something like shares you own where you report the dividends as capital income to Vero in your personal taxation, or a business abroad where you are owning enough of the company that Vero might want to tax the whole business?

I would recommend you discuss your situation with a (free) business advisor where you are living:
https://uusyrityskeskus.fi/en/homepage/
Thanks for the link.

By "self employed" I mean that I'm normally a freelancer. However, I have not been working on any income-generating projects in the past year.

My income is from invested securities (dividends and realised capital gains) that will be taxed personally. I do not own a business abroad.

burak25
Posts: 57
Joined: Sat Apr 06, 2013 1:30 am

Re: Do I need YEL insurance?

Post by burak25 » Wed Nov 24, 2021 10:07 pm

No, YEL is about work you do. An easy way to understand is, how much would you be getting as salary, if you do that job as an employee. So if you don't do any work, your YEL would be 0. If you start working and start getting some money, you can hold it out till it passes 8k limit but only with 14k (approx) you start getting all the unemployment, retirement etc contributions and difference is miniscule.

So no your savings, capital contributions, business expenses etc has nothing to do with your YEL.

muskrat
Posts: 13
Joined: Sat May 09, 2020 3:01 am

Re: Do I need YEL insurance?

Post by muskrat » Wed Nov 24, 2021 10:11 pm

burak25 wrote:
Wed Nov 24, 2021 10:07 pm
No, YEL is about work you do. An easy way to understand is, how much would you be getting as salary, if you do that job as an employee. So if you don't do any work, your YEL would be 0. If you start working and start getting some money, you can hold it out till it passes 8k limit but only with 14k (approx) you start getting all the unemployment, retirement etc contributions and difference is miniscule.

So no your savings, capital contributions, business expenses etc has nothing to do with your YEL.
Thank you. Very helpful.

betelgeuse
Posts: 4102
Joined: Thu Aug 29, 2013 1:24 am

Re: Do I need YEL insurance?

Post by betelgeuse » Thu Nov 25, 2021 2:36 pm

burak25 wrote:
Wed Nov 24, 2021 10:07 pm
No, YEL is about work you do. An easy way to understand is, how much would you be getting as salary, if you do that job as an employee. So if you don't do any work, your YEL would be 0. If you start working and start getting some money, you can hold it out till it passes 8k limit but only with 14k (approx) you start getting all the unemployment, retirement etc contributions and difference is miniscule.

So no your savings, capital contributions, business expenses etc has nothing to do with your YEL.
You also could be having zero revenue and still be required to take YEL. It’s all about the equivalent salary.


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