Background information

In Finland, full-time entrepreneurs are normally not entitled to labour market support (in Finnish 'työmarkkinaturva'). This is regulated in section 11 of the Unemployment Security Act (Työttömyysturvalaki) (2002/1290). Labour market subsidy is a form of unemployment benefit aimed for unemployed persons entering the labour market for the first time or who do not qualify for the basic or earnings-related unemployment allowance (in Finnish 'työttömyyspäiväraha').

The outbreak of COVID-19 has had a major impact on entrepreneurial activities in Finland. In order to ease the pressure caused by the outbreak of COVID-19 on entrepreneurs, the Parliament approved an amendment that will give entrepreneurs a temporary right to labour market support under the Unemployment Security Act (2002/1290).

Content of measure

To be eligible for labour market support, the following conditions must be met:

1. the entrepreneur's full-time employment has ended or the income from the entrepreneurial activities is less than €1,089 per month
2. the reduction of income or full-time work is due to the COVID-19 outbreak

The entrepreneur may continue their business activities while receiving labour market support.

The support can be paid to entrepreneurs between 16 March 2020 and 30 June 2020. The support can be received retroactively.

The labour market support is €33.6 per day and it is paid 5 days a week. Income from entrepreneurial activities decreases the labour market support.

Use of measure

In total 32,600 entrepreneurs received labour market subsidy in April and May 2020. Over half of the recipients were over 45 years old. A majority of them were women but there are no significant differences between women and men. By the end of May 2020, in total €35.5 million was paid out to entrepreneurs.

As of 26 August 2020, in total 48,000 applications had been made and 41,000 entrepreneurs have received labour market subsidy. The numbers of entrepreneurs applying has decreased significantly since the spring and summer months. KELA, the social insurance institution that pays out the subsidy, has been receiving approximately 300 applications per week.

In 2020, in total 44,000 entrepreneurs received labour market subsidy. The total amount paid out by KELA was €165.7 million.

According to a survey made by the Federation of Finnish Enterprises (Suomen Yrittäjät) in November 2020, especially entrepreneurs in the trade sector and entrepreneurs employing 1-4 persons have applied for labour market subsidy.

Target groups

Workers	Businesses	Citizens
Self-employed	Does not apply to businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Public employment service Social insurance	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Direct consultation outside a formal body	Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Peak or cross-sectoral level

Involvement

No information available.

Views and reactions

Due to urgency of the epidemic, no round of comments was organised. Temporary recognition of entrepreneurs are recipients of labour market subsidy was not part of the measures the peak level social partners presented to the government in March 2020.

The Federation of Finnish Entrepreneurs (Suomen Yrittäjät) welcomes this measure and extensions to it. According to the organisation, access to labour market subsidy helps tens of thousands of entrepreneurs to get through the most critical months of the COVID-19 crisis.

In November 2020, the Federation of Finnish Entrepreneurs said the Government's plan to extend the duration of this measure by three months (until March 2021) is too short and it would have been better to extend the duration of this measure by six months.

In February 2021, the Federation of Finnish Entrepreneurs welcomed the new extension of this measure (until the end of June 2021) and argued that this support has been crucial for many entrepreneurs. However, they would like the Government to introduce a specific form of support for solo self-employed.

Sources

• 20 March 2020: Social partners’ proposals to help businesses in the corona crisis (akava.fi)
• 02 April 2020: Yrittäjille oikeus työttömyysturvaan koronavirusepidemian vuoksi (tem.fi)
• 02 April 2020: Hallituksen Esitys HE352020 vp (www.eduskunta.fi)
• 08 April 2020: Yrittäjän väliaikainen työttömyysturva (Temporary labour market security of entrepreneurs) (www.kela.fi)
• 08 April 2020: Laki työttömyysturvalain 11 luvun väliaikaisesta muuttamisesta (" temporary amendment of section 11 of the Act on Labour Market Security")
• 05 June 2020: Goverment proposal HE 93/2020 vp (Hallituksen esitys HE 93/2020 vp) (www.eduskunta.fi)
• 01 September 2020: COVID-19 update (Korona tilannekuva) (valtioneuvosto.fi)
• 19 November 2020: Temporary labour market subsidy for entrepreneurs continues until the end of March (Yrittäjän väliaikainen työttömyysturva jatkuu maaliskuun loppuun –) (www.yrittajat.fi)
• 28 January 2021: Continuation of entrepreneurs' labour market support until the end of June - Pentikäinen: “Entrepreneur's labor market support has been a significant help to many” [Yrittäjän työttömyysturvalle jatkoa kesäkuun loppuun – Pentikäinen: ”Yrittäjän työmarkkinatuki ollut merkittävä apu monelle] (www.yrittajat.fi)
• 18 February 2021: Government proposes to extend labour market support for entrepreneurs until the end of June (valtioneuvosto.fi)
• 17 June 2021: Työttömyysturvapoikkeuksia jatketaan 30.9.2021 asti [Unemployment security exemptions will be extended until 30 September 2021] (valtioneuvosto.fi)