Report the business activity to the TE Office and the unemployment fund.
When working as an entrepreneur or on a grant, your entitlement to an earnings-related daily allowance depends on whether the TE Office considers the grant work to be full-time or part-time. The TE Office issues a statement on the matter to the unemployment fund.
If you are starting a business or are already an entrepreneur when applying for a benefit, report the business activity to the TE Office and the unemployment fund. The TE Office decides whether your situation involves full-time or part-time entrepreneurship.
You are not entitled to an earnings-related daily allowance for the duration of full-time entrepreneurship lasting more than two weeks.
If, while unemployed, you start a new business, its status as your main or secondary occupation is not examined during the first four months. During this period, you can receive an adjusted daily allowance, which takes into account the income from the business activities.
If your business continues after four months, the TE Office will assess its status as full-time or part-time employment. If your business activity is then found to be full-time, you are no longer entitled to a daily allowance. During part-time entrepreneurship, you can still receive a daily allowance.
Paid work that has not been performed as an employee in an employment or a public service function is considered as business activity in unemployment security. Business activities include, for example, activities as a private firm, in agriculture or forestry, via an invoicing cooperative or invoicing fees on an assignment.
In unemployment security, you are considered an entrepreneur if you have an entrepreneur´s pension insurance (YEL) or Farmers´ Pension Insurance (MYEL), and
You are also considered self-employed if you are covered by the Employees' Pensions Act (TyEL) if
The family members of the entrepreneur are married and cohabiting partners living in the same household, children and grandchildren, and the entrepreneur´s own parents and grandparents. A leading position means the CEO and a member of the Board of Directors.
If you have started a full-time business, you are not entitled to an earnings-related daily allowance for the duration of your business activity. The TE Office decides whether your situation involves full-time or part-time entrepreneurship and makes a binding decision for the unemployment fund.
As a full-time entrepreneur, you should consider joining the Entrepreneur Fund in case of unemployment. A full-time entrepreneur cannot become a member of an employee's fund, such as the Unemployment Fund A-kassa.
When you start a full-time business, you can keep your membership in the employee's fund for the so-called period of post-protection, which lasts for 18 months. You can also join the entrepreneur fund while retaining the right to a daily allowance in accordance with the employment condition you have accrued as an employee, for the duration of the post-protection period. The post-protection period ceases when the entrepreneur's employment condition is met or you have been an entrepreneur for more than 18 months. However, a self-employed person's employment condition does not accrue in the employee's fund.
If you have become a salary earner having been self-employed, you can receive a self-employed person's daily allowance during unemployment. The entrepreneur's post-protection ends when you meet the employee's 26-week employment condition. You can belong to an entrepreneur’s or employee's fund during the post-protection period, but the employee's employment condition does not accrue in the entrepreneur fund.
If your business activity is part-time or lasts less than two weeks, the earned income from business activities is taken into account in the daily allowance paid to you as adjusted income. Information on how to apply for an adjusted daily allowance can be found here.
During part-time business activities, you can belong to an employee's fund, such as the Unemployment Fund A-kassa, and also accrue the employee's employment condition in other work performed as an employee.
Light entrepreneur refers to a person who works independently through a company or similar entity that provides invoicing services. Many cooperatives are such entities.
If you work through an invoicing company, the key to your unemployment security is whether you work as an employee or an entrepreneur.
As an employee, you can work, for example, when
You are an entrepreneur or self-employed, for example, when
From an unemployment security viewpoint, you can also be considered an entrepreneur in the following cases:
When calculating an earnings-related daily allowance, the remuneration received by a light entrepreneur is adjusted in the same way as the income from part-time employment. The invoicing fee and other expenses of the invoicing service are deducted from the fee, as for other entrepreneurs. For this reason, a fee statement must be submitted to the fund, indicating, among other things, the invoicing fees.
If you are a family member of an entrepreneur and you do not own anything in the business, you can insure yourself with the employee's fund against unemployment.
If you work in a family business
However, as a family member of an entrepreneur, you can only be granted an earnings-related daily allowance if you have worked in the family business for 52 weeks meeting the employment condition, and you have been a member of an employee's fund during that period. In addition, you must not have had an ownership interest in the business for 12 months.
Work done for another employer
On the other hand, the work you perform with another employer entitles you to earnings-related security on the basis of 26 weeks of employment. However, you cannot combine work in a family business with another employer in order to fulfil the employment condition.
When you start a full-time business, you can insure yourself in an employee fund, i.e. our fund for a maximum of 18 months of post-protection.
The post-protection period starts from the date you become a full-time entrepreneur. If your business activity ends during the 18-month period of post-protection, you are entitled to receive a daily allowance, based on the wage income that preceded your entrepreneurship.
You will not be paid a daily allowance if your business activities end after the 18-month the post-protection period.
When you become a full-time entrepreneur, you should become a member of the entrepreneurs´ unemployment fund no later than three months after the start of your business activity, in order to secure your right to an earnings-related daily allowance in the event of unemployment.
The entrepreneur's employment condition (15 months) is accrued only as a member of the entrepreneur fund.
If you become unemployed before you have fulfilled a self-employed person's 15-month employment condition, you are entitled to the unemployment allowance that would be paid to you if you were still our member in the employee's fund. A prerequisite for this is that you joined the entrepreneur fund within one month of leaving the employee's fund. The daily allowance is granted and paid by the entrepreneur fund.
Make sure that you have insured yourself in the right fund suitable for your situation, so that there will be no interruption to your earnings protection.
Make sure that you have insured yourself in the right fund suitable for your situation, so that there will be no interruption to your earnings protection. As an entrepreneur, you should insure yourself in an entrepreneur fund and as a salaried worker in an employee's fund, such as our Unemployment Fund A-kassa.
Even though there are certain transition periods in the law for changing funds, it is always a good idea to change funds as soon as your situation changes, so that you can keep your own earnings security uninterrupted. If you go over into paid work, you should immediately go over to an employee's fund and back to an entrepreneur fund as soon as you go back into paid work when re-starting your business later.
When changing from self-employment to a wage and salary earner, you may be paid an earnings-related daily allowance during unemployment on the basis of the employment condition fulfilled as an entrepreneur, if the employee's employment condition has not yet been met. At the beginning of the employment, you can become a member of an entrepreneur fund or transfer to an employee's fund. Please note, however, that the employee's employment condition does not accrue in the entrepreneur fund.