If you become unemployed after running your own company, you may qualify for a basic allowance from Kela or earnings-related unemployment security, if you are a member of an unemployment fund. Through membership of an entrepreneurs' unemployment fund, entrepreneurs can secure their income even in the event of their business operations ending or if they sell their share of the company.
Membership of the Entrepreneurs' Unemployment Fund is open to permanent residents of Finland aged less than 65 years who hold a statutory pension insurance policy based on an annual income of at least 12,420 euro (YEL, YyEL or MYEL).
Who is an entrepreneur?
As far as unemployment cover is concerned, an entrepreneur refers to
those obliged to take out YEL or MYEL insurance or
anyone within the scope of other pension insurance who
personally holds at least 15%, or together with family members holds 30% or whose family holds at least 30%, of a company in which he/she works in a leading position
personally or together with family members holds 50% or whose family holds at least 50%, of a company in which he/she works.
Family members are considered to refer to the entrepreneur’s spouse (including common-law partner) living in the same household, children and parents.
Leading positions include the post of Managing Director, Chairman or Member of the Board, and similar positions.
Basic unemployment allowance from Kela
If you are not a member of an unemployment fund for entrepreneurs and you meet the condition regarding previous employment (kela.fi) for a self-employed person on becoming unemployed, you may be eligible for basic unemployment allowance from Kela (kela.fi). The allowance is paid for a maximum of 400 days. When the allowance runs out you can claim labour market subsidy.