A full-time entrepreneur has unemployment insurance, but in order to get it, a few things need to be taken care of: a full-time entrepreneur must have joined the Entrepreneur Fund in time and take care of his or her YEL insurance income to a sufficient level to earn earnings.
It is worth joining the Entrepreneur Fund as the business grows full-time. In practice, an entrepreneur can join the entrepreneur's fund when the YEL insurance has been taken out and the level of YEL income estimation is at least 14,803 euros (2024). You can test whether you agree to become a member of the Entrepreneurship Fund here.
Unemployment insurance can be restored as follows:
- You have joined and been a member of the Entrepreneurship Fund for more than 15 months, so that you have also taken out YEL insurance with a minimum income of EUR 14,803.
- You have not joined the entrepreneur fund or taken out YEL insurance, but you have some separate insurance against unemployment.
During unemployment, the Entrepreneur Fund pays earnings-related daily allowance based on confirmed YEL income estimation. If have not arranged your unemployment in some way according to the above-mentioned matters, the entrepreneur will drop directly to Kela's labor market support.
If the entrepreneur has not had time to receive 15 months of full membership of the Entrepreneur's Fund, the entrepreneur can receive earnings-related daily allowance from his or her old employee's fund with the right of retrospective protection. The right of post-employment protection is exercised if the entrepreneur has joined the entrepreneur's fund directly from the employee's fund and has not fulfilled the entrepreneur's employment condition when he or she becomes unemployed. In this case, the entrepreneur receives earnings-related daily allowance based on his or her previous salary income.
The right of post-protection is valid for a maximum of 15 months from the date of commencement of business. The condition for the right of post-protection is that the entrepreneur has joined within three months of leaving the employee's fund.
When you become a full-time entrepreneur, it’s a good idea to make sure your earnings security isn’t interrupted. If the entrepreneur transfers to the entrepreneur's fund within three months of starting the business, the daily allowance accrued in the employee's fund also transfers to the entrepreneur's fund. It is not advisable for a full-time entrepreneur to remain a member of an employee fund, as membership automatically ends when the business has lasted for more than 18 months.
Similarly, if the business is terminated and the entrepreneur transfers back to become a member of the employees' fund while still a member of the entrepreneurship fund, the right to a daily allowance is transferred with him to a new fund.