Compensation for work
The work compensation does not include a salary. It is a compensation. This means that the work provider pays a tax on your work compensation, determined by your tax deduction card, like on a salary, but it is not necessary to pay employment pension insurance or other social security contributions on the work compensation.
In this case, you need to take out pension insurance for the self-employed – YEL insurance – when the value of your monthly input exceeds a certain limit. In 2025 for example, the lower limit for YEL insurance is EUR 9,208.43, or an average of EUR 767 a month.
If you receive compensation for work, you will not be governed by labour laws. As the recipient of work compensation, you have the same legal status as an entrepreneur.

03.02.2025

Entrepreneurship
Signs of entrepreneurship include:
In addition, self-employed and light entrepreneurs are entrepreneurs.
If you sell your work as an independent entrepreneur, the company or other customer ordering your work will not lead and supervise your work.
As an entrepreneur, you may have a trade name or you act as a trader. You may also be a freelancer or act through a company/enterprise. If you are an entrepreneur, you must pay a self-employed person’s pension premium (YEL) and your other insurance policies.

If your work has all the characteristics of an employment relationship, you are an employee, even if you have agreed on something else. For more information, read the Platform work section.
Freelancers
If you are a freelancer, you can work for one or more companies or other customers providing work at the same time. As a freelancer, you can either be an entrepreneur or an employee, or you can receive so-called work compensations.
When you work as a freelancer, you will enter into a commission agreement with the client. It must be written in the agreement whether a fixed-term employment relationship or a commission to the entrepreneur is agreed upon.

Cookie settings

Essential cookies

These cookies are necessary for the technical operation of our website and cannot be switched off. Functional cookies are critical for such abilities as browsing and using the features of our website.

Analytics

These cookies only collect anonymous information about how our website is used. Analytics cookies help us to measure and analyse how our website is working. For example, we use these cookies to determine which website content is popular, and to ensure that visitors find content that is relevant to them. The information collected is statistical data and cannot be used to identify individuals. You may nevertheless opt out of these cookies at any time.

Targeting and advertising cookies

We may use these cookies for such purposes as enhancing the relevance and interest of the advertising that you view. Cookies may also help to make the content of our website more interesting to you. Information gathering is based on the unique identifiers of your browser or device. You may opt out of these cookies at any time.