Unemployment benefits for entrepreneurs
As an entrepreneur, you are entitled to the same unemployment benefits as wage earners. Depending on your situation, you may get earnings-related allowance, basic unemployment allowance or labour market subsidy. If you work during the period of unemployment, you may also receive adjusted unemployment benefit. TE Services find out on a case-by-case basis whether you are entitled to unemployment benefits. Apply for unemployment allowance from the unemployment fund for entrepreneurs or from Kela.
If your business runs out or is significantly reduced, you can receive unemployment benefits. Unemployment benefits include earnings-related unemployment allowance, basic unemployment allowance and labour market subsidy.
You are entitled to unemployment allowance if you meet the employment requirement for entrepreneurs. You meet the requirement if you have worked as an entrepreneur for at least 15 months during the four years preceding your unemployment, and the income on which your pension insurance is based has been adequate (at least 14,803 euros a year in 2024).
If you are a member of an unemployment fund for entrepreneurs, you are entitled to higher earnings-related allowance. If, however, you are not a member of an unemployment fund, you can receive basic daily allowance from Kela. If the TE Services regard you as an entrepreneur, you may receive adjusted unemployment benefit, in other words, daily allowance reduced by the entrepreneur's income. Usually, you can receive unemployment allowance for up to 400 days.
If you do not meet the employment condition, you can apply for labour market subsidy from Kela.
If you terminate all your business activities, you can immediately register as an unemployed jobseeker at the TE Services.
Provide the TE Services with documentation proving that you have finished your business activities. Based on the documents, the TE Services shall determine whether your business activities have really ended. It is usually sufficient that you have finished all your business activities, terminated your YEL insurance and removed your company from the Tax Administration registers. Also bankruptcy, liquidation, or partners’ agreement on the company's termination will be interpreted as the end of your business activities.
Unemployment is deemed to begin from the day you register as an unemployed jobseeker. The TE Services provide a statement to your unemployment fund or Kela on whether they support the payment of unemployment allowances to you. Apply to your unemployment fund for earnings-related allowance within three months of the start of your unemployment. Send the application for earnings-related allowance to your unemployment fund or Kela within three months of the start of your unemployment. You are entitled to unemployment benefits after a waiting period of seven days.
If your business is reduced so much that it no longer provides you with a livelihood, you can ask the TE Services about your possibilities of receiving an unemployment benefit.
The TE Services will first determine whether you are an entrepreneur according to the Unemployment Security Act. If the TE Services regard you as an entrepreneur, they will determine whether you are a full-time or part-time entrepreneur.
If the TE Services evaluate that you are a full-time entrepreneur, you can no longer be paid unemployment benefits.
If you are a part-time entrepreneur and your main employment ends, you can register as an unemployed jobseeker at the TE Services. Based on the information provided by you, the TE Services will first determine whether you are an entrepreneur according to the Unemployment Security Act. If the TE Services regard you as an entrepreneur, they will assess whether you are a full-time or part-time entrepreneur.
If the TE Services evaluate that you are a full-time entrepreneur, you can no longer be paid unemployment benefits.
If you become unemployed, the TE Services determine whether your partial ownership makes you an entrepreneur. In general, the TE Services regard you as an entrepreneur, if you hold a leading role in the company, and either one of the following is true:
- you own at least 15% of the company
- you own at least 30% of the company together with your family.
The TE services will also regard you as an entrepreneur, if you work in the company and either one of the following is true:
- you own at least half of the company
- you and your family own at least half of the company.
If the TE Services regard you as an entrepreneur, they will assess whether you are a full-time or part-time entrepreneur.