Entrepreneur’s unemployment benefit

Entrepreneurs may also be entitled to unemployment benefit if they are unemployed and registered as jobseekers. An entrepreneur is unemployed when they have ended their business activities or sold their share of the company. Entrepreneurship can end in selling or dissolving the company, in bankruptcy, liquidation, or because of a divorce. Entrepreneurship can also end if you are no longer employed by the company.

If you have to end your business activities, register as an unemployed jobseeker immediately on the Työmarkkinatori online service or contact your municipality’s employment services (kuntasi työllisyyspalvelut). You may receive unemployment benefit starting from the day you have registered as an unemployed jobseeker. If you want to handle matters with your municipality’s employment services, you can find the contact details on the regional pages of Työmarkkinatori.

In order to receive unemployment benefit, your status as a jobseeker must be active and you must be prepared to accept full-time work.

For unemployment benefit, you will also need a labour policy statement (työvoimapoliittinen lausunto). Ask your municipality’s employment services about this. The labour policy statement will be sent to the unemployment fund (työttömyyskassa) or Kela. This may take some time. 

For more detailed instructions for registering as an unemployed jobseeker, please visit the InfoFinland page If you become unemployed. 

Earnings-related unemployment allowance (ansiopäiväraha)

If you want to be entitled to earnings-related unemployment allowance, you must join the unemployment fund for entrepreneurs (yrittäjien työttömyyskassa). If your business operations end, you may then apply for earnings-related daily allowance (ansiosidonnainen päiväraha) from the unemployment fund.

To receive earnings-related daily allowance from the unemployment fund, you must have been an entrepreneur and a member of the fund for a required time period before becoming unemployed. Earnings-related unemployment allowance is larger than basic unemployment allowance or labour market subsidy. Its size depends on the amount of earned income you have registered in the entrepreneur’s retirement pension insurance.

General social security benefit

You may be entitled to the general social security benefit if you end your business activities. Your local employment services (tyomarkkinatori.fi) and the KEHA Centre will assess your situation and provide a statement to Kela.

You can also receive the general social security benefit if your business activities are carried out on a part-time basis. However, the KEHA Centre will first assess whether your business activities are your main occupation or a secondary activity. If, according to the KEHA Centre, your business activities are your main occupation, you are not eligible for the general social security benefit.

If you start a business whilst unemployed, Kela may pay you the general social security benefit for a period of 4 months. The general social security benefit is then offset against any income you receive at the same time from business activities. After 4 months, the KEHA Centre will assess whether your business is a secondary or primary occupation. If it is your main occupation, you will no longer be eligible for the general social security benefit.

If you have any questions about your situation, please contact Employment Services (tyomarkkinatori.fi) where you will be asked for further information if necessary.

Read more about unemployment benefits on the InfoFinland web page Unemployment benefit.

Entrepreneur’s occupational health care (työterveyshuolto)

An entrepreneur and other persons working for themselves can organise occupational health care for themselves if they like. An entrepreneur is not obliged to arrange occupational health care for themselves. However, an entrepreneur must organise occupational health care for their employees. This can be arranged at the local health centre (terveyskeskus) or, for example, a private clinic. Read more on the InfoFinland page Occupational health and illness.

When an entrepreneur falls ill

If you fall ill, Kela may pay you sickness allowance (sairauspäiväraha) which compensates for the loss of earnings due to incapacity for work if this incapacity continues for less than a year. Payments of daily allowance begin after the qualifying period for benefit (omavastuuaika). An entrepreneur’s qualifying period for benefit is usually the first day of illness plus the following three weekdays.

Financial counselling

Enterprise Finland provides a free phone service that provides expert counselling if a company is facing financial difficulties. The helpline provides assistance in Finnish, Swedish and English.

Financial Aid counselling service

• in Finnish, Tel. 029 502 4880
• in Swedish, Tel. 029 502 4881

The service is available from Monday to Friday at 9 am–3 pm. In Swedish, it is open on Thursdays from 9 am to 3 pm.