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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case FI-2020-15/254 Updated – measures in Finland

Temporary recognition of entrepreneurs as recipients of unemployment benefits

Yrittäjien väliaikainen oikeus työttömyysturvaan

Country Finland , applies nationwide
Time period Temporary, 08 April 2020 – 31 December 2020
Type Legislations or other statutory regulations
Category Income protection beyond short-time work
– Extensions of income support to workers not covered by any kind of protection scheme
Author Amanda Kinnunen (Oxford Research) and Eurofound
Case created 03 April 2020 (updated 06 October 2020)

Background information

In Finland, entrepreneurs are not entitled to labour market support. This is regulated in section 11 of the Unemployment Security Act (Työttömyysturvalaki) (2002/1290).

The oubreak 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 Uncemployment 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.

Updates

The following updates to this measure have been made after it came into effect.

06 July 2020

In June 2020, the Parliament accepted the Government's proposal to extend the duration of this temporary amendment until the end of 2020.

Use of measure

In total 32,600 entrepreneurs received unemployment allowance 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.

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 security was not part of the measures the peak level social partners presented to the government in March 2020.

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)
  • 28 August 2020: COVID-19 update (Korona tilannekuva) (valtioneuvosto.fi)

Citation

Eurofound (2020), Temporary recognition of entrepreneurs as recipients of unemployment benefits , case FI-2020-15/254 (measures in Finland), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.