MYEL pension insurance for grants

This obligation applies to all 18–68-year-old grant recipients who have been awarded a grant from Finland under the following conditions:

1. The grant is awarded for working for at least four months on an artistic or scientific project (= working grant),
2. The amount of the grant is EUR 4.288 or more when converted to annual labour income (in 2023). More information: Annual (MYEL) earnings.

The obligation to take out insurance does not apply to those under the age of 18 or over the age of 69. Recipients of an old-age pension cannot take out insurance.

The insurance obligation is limited to working grants and therefore does not apply to grants intended solely to cover expenses, such as travel grants.

The obligation to take out pension insurance also applies to working in a group under a grant if the other pension requirements are met. The person in charge of the working group is responsible for reporting any such grants to Mela. More information for group leader.  

Mela also provides insurance cover for grants awarded to recipients working abroad if the artist is entitled to Finnish social security benefits while working. If you have been awarded a grant to support yourself, for example to participate in a residency programme abroad, we recommend that you verify that the insurance is valid abroad.

If the artist uses the grant for work of four months or more in shorter periods (for example, in two two-month periods), the artist must also apply for insurance, and MELA will in principle grant the insurance in one period. Several MYEL insurances may be valid at the same time if the artist has several different grants.

Grant recipient’s labour income and insurance cover

The annual labour income is set by the insurance decision and is valid for the entire insurance period indicated in the insurance decision and cannot be revised for any reason other than disability or part-time pension. The confirmed labour income is based on the amount of the working grant awarded and the period of work declared in the grant decision or in the insurance application. Labour income is not the same as the amount of the grant. Labour income is determined on an annual basis, even if the duration of the grant is less than one year. 

Paid employment or YEL insurance does not exclude the obligation to be insured for grant work.

In addition to pension insurance cover, Mela provides insurance against workplace accidents for grant recipients. The insurance provision also includes group life insurance and family pension in the event of a death. The amounts of maternity, sickness and unemployment allowances of grant recipients are based on the earned income insured by Mela.

Expense deductions

The obligation to take out insurance only applies to working grants, meaning that grants awarded to cover specific costs, such as travel expenses, are exempt.

If the grant consists of funds to cover both working and other expenses, the amount allocated for expenses is deducted from the grant.

For hybrid grants, pension insurance is determined based on the amount of the grant allocated for working. In a situation like this, the grant recipient must submit a clarification of how the grant’s funds are allocated for working and expenses to Mela, unless this information is included in the grant decision. If the grant is awarded for work, and related expenses without a specific limit, you can deduct up to half of the total amount of the grant.

The body that awarded the grants determines the right to deduct expenses, you can check your eligibility for deduction of expenses in the award decision or from the awarding body. The deduction of expenses must be made in the insurance application or at the latest during the appeal period of the insurance decision. Once the amount of the working grant has been calculated and the insurance has been awarded for a certain amount of income, it cannot be changed after the end of the appeal period. For more information: expense deductions. 

The pension provisions

The pension insurance provision is between 13% and 25% of the total amount of the grant. The amount of the provision is based on the age of the grant recipient and the MYEL income declared in the insurance decision. The amount of the provision can be estimated using Mela’s security calculator for grant recipients. 

You can claim tax deduction for pension contributions. The artist’s partner can also claim tax relief.

In addition, a health insurance contribution and public broadcasting tax (Yle tax) are taxed on earned income based on pension insurance. The healthcare contribution comprises a daily allowance contribution payment 1.36% and healthcare payment 0,60% of your annual earnings in 2023. Yle tax payment is 2.5% of the part of the MYEL income that is above EUR 14.000. The maximum amount of the tax is EUR 163. If the artist's income is less than EUR 14.000, no Yle tax is payable. More information on the social insurance contribution and Yle tax.   

Pension for artists' grants awarded before 2009

Note: As a rule, grants and scholarships have not accrued statutory employment pension before 2009. However, according to the National Artists' Grants Act, artists' grants awarded before 2009 will, under certain conditions, accrue to a pension for artists' grants awarded for 3, 5 and 15 years. These pensions are administered by Keva. Read more: Pension for artists' grants awarded before 2009 (in Finnish). 

More information on MYEL insurance from Mela

For more information about pension insurance cover for grant recipients, please visit the Mela website. Insurance applications can also be completed and submitted online.

Mela advises grant recipients on all questions related to pension insurance for grants. Mela's helpline for grant recipients is available on 029 435 2650.

You can also ask the Finnish Artists' Association's lawyer for advice. The lawyer's service is intended for artist members of STS member associations.