Unemployment fund

Unemployment security for entrepreneurs

Membership in an unemployment fund is the only way to influence the amount of unemployment benefit. Manage your risks and join AYT.

An insurance offering unemployment security is one of the most important insurances for salaried employees. If you become unemployed, it is important to make sure you will not rely solely on the basic security provided by Kela. The same level of security is available to entrepreneurs, so by remaining a member of an employee fund you may be doing yourself a disservice, if your status changes from a salaried employee to entrepreneur.

The entitlement to daily allowance of self-employed persons who become unemployed is limited to the so-called requalification security, which is offered for a period of 18 months and begins from the start of the entrepreneurial activities. After this time, an entrepreneur who is a member of an employee fund will only be entitled to basic daily allowance, and will not benefit from the membership fees they have paid in.

If you are an entrepreneur, you need to understand how changes in your status affect your daily allowance. Any entitlement to daily allowance earned as a member of an employee fund can be transferred to AYT without any interruptions in your unemployment security, if you transfer your fund membership to AYT immediately when you launch entrepreneurial activities. The longer you wait to transfer your membership, to longer you will be entitled to nothing but the basic security paid by Kela.

In short: Transferring your membership (as a rule) to AYT as soon as possible after launching entrepreneurial activities pays off.

Don't throw away the security you earned as a member of an employee fund by discontinuing your membership if your start your own business.

Your family members may also be entrepreneurs, even unknowingly. If you own more than 50% of a company, and your spouse or your child living in the same household works for that company, they are classified as entrepreneurs in the unemployment security system. This is true even if they were insured under TyEL and had no ownership in the company. In this case, there is no point in your spouse or child paying a membership fee, because the employee fund would refuse their request for unemployment security after the requalification security period referred to above.

Meanwhile, AYT membership also provides security for family members deemed entrepreneurs. Make sure you and your family members don't pay any membership fees for nothing. Our skilled staff will provide answers to questions pertaining to each individual situation. Call us on 09-2535 3100 or read more.