Entrepreneurship and earnings-related allowance

If you start working as a part-time entrepreneur, you may still be entitled to adjusted earnings-related allowance. In this case, income from your minor business activity will reduce the amount of your full allowance in the same way as income from part-time work.

The employment authority always decides whether your business activity is considered full-time or part-time. Note that low income alone does not automatically mean that the activity is considered part-time.

The Unemployment Fund will always require a statement from the employment authority regarding your entrepreneurship, even if the business started before you became unemployed.

Remember that to receive earnings-related allowance, you must still meet the general eligibility requirements.

More information is available on the Job Market Finland (Työmarkkinatori) website.

You cannot receive adjusted earnings-related allowance during periods when your business activity is considered full-time. The employment authority always decides whether your business is part-time or full-time.

When assessing the scale of your business activity and your role as an entrepreneur, the employment authority considers factors such as how much work the business requires and the size of your ownership share, either alone or together with family members.

The Unemployment Fund will always require a statement from the employment authority regarding your business activity, even if the business started before you became unemployed.

More information is available on the Job Market Finland (Työmarkkinatori) website.

Entrepreneur Fund – unemployment security for entrepreneurs

If the employment authority determines that your business is full-time, or if you move from being an employee to a full-time entrepreneur, we recommend contacting the Entrepreneur Fund to check your possible entitlement to unemployment security as an entrepreneur.

Light entrepreneurship refers to situations where you work independently but invoice for your work through a cooperative, a company that handles invoicing and accounting on your behalf, or a digital work platform. This is usually considered business activity, even if you do not have your own company or business ID.

The employment authority will determine whether the activity is part-time or full-time. The Unemployment Fund always requires a statement from the employment authority regarding your entrepreneurship, even if the activity started before you became unemployed.

If your business activity is considered part-time, you may be entitled to adjusted earnings-related allowance. In this case, income from your business reduces your allowance in the same way as income from part-time employment. If your activity is considered full-time, you are not entitled to earnings-related allowance.

The same rules that apply to other entrepreneurs also apply to light entrepreneurs. You can read more in sections below:

Short term self-employment

Starting a business when unemployed

Impact of business income on earnings-related allowance

If your business activity lasts no more than two weeks, it will not be assessed as full-time or part-time. If you have several assignments lasting no more than two weeks, you should nevertheless contact the employment authority.

If your business activity lasts longer than two weeks, you must notify the employment authority. For business activity that does not exceed two weeks, it is sufficient to inform the Unemployment Fund, which will take your business income into account when adjusting your earnings-related allowance.  

If you start a business while unemployed, it is automatically considered part-time for the first four months. During this period, your self-employment income will affect your earnings-related allowance. However, it is only after four months that the employment authority will assess whether your business activity is part-time or full-time.

You must report your business income to the Unemployment Fund on a monthly basis, and it will reduce your earnings-related allowance similar to other income. You can read more about the effect of income on earnings-related allowance here.

Please note that if you end an existing business and start a new one within the same maximum period of earnings-related allowance, the scale of your business activity will be assessed immediately when the new activity begins.

Income from business activity reduces your earnings-related allowance in the same way as wages from part-time work. You must report your business activity when submitting your application and provide the Unemployment Fund a monthly report of your business income and expenses. If you work through an invoicing service, submit the payment statements to the Fund.

If your business activity has continued for at least six months during the most recent confirmed tax year, your income will be taken into account based on the tax decision.

Business activity does not count toward the work requirement, and the hours you spend on the business do not need to be reported in your earnings-related allowance application. Work invoiced through a cooperative or an invoicing company is also considered self-employment, as it is not carried out under an employment or public service relationship.

Please note that full-time entrepreneurs are not entitled to adjusted earnings-related allowance from the Unemployment Fund. The employment authority will assess whether your business activity is full-time or part-time.