I have business activities

Who is considered an entrepreneur?

An entrepreneur is a person who

Engages in gainful employment without being in an employment or public-service relationship.
For example, working through an invoicing service (so‑called light entrepreneur) or on other assignments that are not employment relationships.
Holds a leading position in a limited liability company (Ltd), in which they personally own at least 15% of the share capital or voting rights, or together with their family members at least 30%.
Works in a limited liability company in which they themselves or together with their family members own at least 50% of the share capital or voting rights.
Works in another company or organization in which they themselves or their family members have corresponding controlling power.

A person in a leading position is, for example, a managing director or a member of the board of directors.

A family member refers to a spouse (including a cohabiting partner) or a person who is directly related to the entrepreneur in the ascending or descending line and lives in the same household.

Ownership includes both direct and indirect ownership, for example through another company.

Full-time or part-time business activities?

If you become unemployed, inform the employment authority if you or your family members have any business activity. All business activity and all work performed without an employment relationship must be reported to the employment authority. The employment authority determines whether the business activity is considered full-time or part-time. The employment authority issues a statement on the matter to us at the unemployment fund. For more detailed information on how full-time and part-time business activities are assessed, you can contact the employment authority.

Full-time business activities

If the employment authority considers that you are working full-time as an entrepreneur, you are not entitled to earnings-related unemployment allowance from an employee unemployment fund until your business activity is deemed to have ended, the business activity has been demonstrably suspended, or your work in the company has ended.

If you start full-time business activity, you may, if you wish, retain your membership during the so-called protection period, i.e. for 18 months. However, business activity does not accrue the employment condition for the employee unemployment fund, and likewise membership in an employee unemployment fund does not accrue the employment condition for entrepreneurs. If your business activity ends before the 18-month period has expired, the employment condition you previously accrued as an employee will remain valid. If the business activity continues for more than 18 months, you will lose the employment condition you previously accrued as an employee.

Part-time business activities

Part-time business activity does not prevent the payment of earnings-related unemployment allowance or membership in an employee unemployment fund. If you become unemployed, the income earned from part-time business activity is taken into account as adjusted income when earnings-related unemployment allowance is paid.

How is income from business activities taken into account?

Income from part-time business activities is taken into account in the earnings-related unemployment allowance based on an income statement covering as long a period as possible. When the entrepreneurship has continued for long enough that its income has already been taxed in personal taxation, the most recent confirmed personal tax decision is used as the basis for calculation.

When the allowance is adjusted, only the part of the business income that has been taxed as earned income is taken into account. Any portion taxed as capital income is not included.

Attach the most recent confirmed personal tax decision to your unemployment allowance application. After that, submit the tax decision annually whenever the taxation has been confirmed.

If the secondary self-employment is so new that its income has not yet been taxed, or if the income has changed substantially after the taxation was confirmed, income based on bookkeeping covering as long a period as possible is used for the adjustment.

In the adjustment of the allowance, business income largely follows the same principles as the adjustment of wage income. You can read more about adjusted unemployment allowance in the section “Part-time work and adjusted allowance.”

Part-time work and adjusted daily allowance

Example of the adjustment of business income

Miikka has become unemployed from his job as a steward. In addition to his wage employment, he runs a business. The employment authority has assessed the business activity as secondary (part-time).

Miikka applies for earnings-related unemployment allowance starting from 1 January 2026. He attaches his confirmed tax decision for the year 2024 to the application. According to the tax decision, his earned income from business activities in 2024 amounted to a total of EUR 1,488.

The income from business activities is taken into account on a monthly basis as follows:

1,488 € / 12 = 124 €

Half of the income subject to adjustment reduces the amount of the full earnings-related daily allowance. The business income therefore reduces the full daily allowance as follows:

124 € × 0.5 / 21.5 = 2.88 € per day