As an entrepreneur / Light entrepreneur you take care of your employment pension insurance yourself. YEL insurance accrues you an employment pension for old age and also takes care of you during illness, parenthood or unemployment.
If you earn more than 8 575,45€ (2023) in 12 months you are obligated to take YEL-insurance. Please note that YEL earnings are not calculated for a calendar year. YEL- earnings are always defined as an annual amount, even if the YEL-insurance is only valid for part of the year. Although YEL earnings are estimated on an annual basis, YEL insurance payments are invoiced only for the period of validity of the insurance. Annual means any period of 12 months, for example, 1.4.2021-31.3.2022.
YEL-insurance is statutory and you cannot replace it with voluntary pension insurance. If you do not take YEL insurance on time, the YEL insurance company may charge a default fee. Generally, the insurance must start from the day when the work has started. Note that you have six (6) months to take the insurance. Please note that if your business momentarily ends, YEL-insurance cannot be taken for a break, but it can be terminated if your work comes with a longer break of several months. When you return to work again, you can apply for a new YEL-insurance.