In Finland, entrepreneurs are generally perceived positively and respected. Entrepreneurship is indeed a solid employment option, especially as there are various forms of entrepreneurship available, such as full-time, part-time or light entrepreneurship. Is it possible for an unemployed person to engage in business activities without losing their earnings-related allowance?
If you work as an entrepreneur, your right to earnings-related allowance depends on whether the TE Office considers the work to be full-time or part-time. The TE Office issues a statement on the matter to the unemployment fund.
How is entrepreneurship defined in terms of unemployment security?
In terms of unemployment security, any gainful employment that is not performed in an employment or a public service relationship is considered a business activity. As traditionally understood, you engage in business activity when you work for a company or business that you fully or partially own. An entrepreneur may be engaged in gainful employment as a self-employed person or a general partner, or in a limited liability company they own. Such work is easy to perceive as a business activity.
Many of our members are professionals in fields where it is difficult to find a traditional employment relationship. They may utilise various billing services or join cooperatives which can then process their invoicing and accounting or forward work offers. This often leads to an impression that the work is performed under an employment relationship. In employment security, however, such work is mainly considered a business activity. In terms of employment security, light entrepreneurship is also a business activity.
No one becomes an entrepreneur based on ownership alone. What is required is that the owner also works for their company.
Read more about entrepreneurship and earnings-related allowance
How do business activities affect earnings-related allowance?
The TE Office makes a decision on whether a business activity is a full-time or a part-time venture and makes a conclusive statement to the unemployment fund. If a person has started their business activity while unemployed, they may practice the activity for a duration of four months before the TE Office assesses its full-time or part-time nature.
For part-time and beginner entrepreneurs, income is adjusted in relation to earnings-related allowance. Income information is obtained from a tax decision, an income statement, a revenue and expense statement, or a payslip. If the business activity that was started while unemployed continues, the TE Office assesses the employment effect of the activity and whether the entrepreneur is entitled to daily allowance following the four-month period. If the business activity is considered to be full-time, no allowance is paid out.
Can I join an unemployment fund for salaried workers as an entrepreneur?
A part-time entrepreneur may join, and be a member of, A-kassa while working as a salaried worker. If a salaried worker becomes a full-time entrepreneur, they may continue as a fund member for a maximum of 18 months. A full-time entrepreneur is allowed to transfer their membership over to the Entrepreneur Fund if their income exceeds the limit for unemployment security under the pension insurance for the self-employed or the farmers’ pension insurance, a minimum 14,803 euros in 2024.
