Freelancer or employee — which pays more?

Freelancer or employee?

YEL contribution is the self-employed person's pension insurance contribution. It is calculated on the YEL income base set by the entrepreneur, which is often lower than actual invoicing. In 2026 the rate is 24.10% for those under 53, 25.60% for ages 53–62, and 24.10% for 63+. The YEL contribution is tax-deductible.

Holiday bonus is paid to employees but not to freelancers. It is typically 50% of one month's salary (paid in June), adding roughly 8% to annual income. The comparison includes holiday bonus by default, but you can deselect it.

Break-even revenue is the invoicing level at which a freelancer's net income exceeds an employee's net income. The calculator computes this automatically and marks the point on the chart.

Sick days are paid for employees but unpaid for freelancers (days 1–9). Kela only compensates sick leave from day 10 onwards. The default is 5 sick days per year, but you can change the figure.