Unemployment security for entrepreneurs

As an entrepreneur, you can also be entitled to unemployment security. Your right to benefits and their amount depend above all on your YEL income and on whether your business activity continues or has ended. Situations vary, which is why the right solution is often individual.

Why is YEL income crucial for unemployment security?

Even a small change in your YEL income can affect what kind of unemployment security is available to you.

In 2026, the lower limit for an entrepreneur’s unemployment security is €15,481 per year. It is advisable to set your YEL income slightly above this limit so that future index adjustments do not push it below the threshold.

When your YEL income reflects your actual work contribution, your social security is also at the right level.

Can an entrepreneur receive unemployment benefits?

Yes.

An entrepreneur can receive unemployment benefits in two ways:

from the Entrepreneur Fund, if you are a member
from Kela, if you are not a member of a fund

In both cases, you must register as an unemployed jobseeker with the employment services.

When can an entrepreneur receive unemployment benefits?

You may receive unemployment benefits when:

your business activity ends completely, or
your business activity is substantially reduced and no longer provides your main livelihood

Each situation is always assessed as a whole. The assessment takes into account, for example, the scope of the business, income and workload.

Does the business always have to end completely?

Often yes – but not always.

If you apply for earnings-related allowance from the Entrepreneur Fund, your business activity usually must end completely. However, ending the business is not the only option in all situations.

If your business activity slows down or decreases, changing your YEL income to better reflect the new situation may be the right solution. This way, your social security continues to be based on your actual work contribution.

Apply for a change to your YEL income in the online service
Read more about terminating YEL insurance

What if I don’t want to stop being an entrepreneur completely?

That is completely understandable. Changes in business activity do not always mean major or permanent decisions.

If your business continues, but:

your workload decreases significantly, or
your income falls more permanently,
updating your YEL income may be the right solution. This helps keep your
social security aligned with your real situation and supports you even when the outlook is uncertain.

Apply for a change to your YEL income in our online service

How does YEL income affect an entrepreneur’s unemployment security?

YEL income is a key factor in an entrepreneur’s unemployment security. It affects both your entitlement to earnings-related allowance and the amount you receive.

To qualify for earnings-related allowance as an entrepreneur, you must:

be a member of the Entrepreneurs’ Unemployment Fund
have YEL income at least at the unemployment security lower limit (€15,481 in 2026)
have worked as an entrepreneur and been a member of the Entrepreneurs’
Unemployment Fund for at least 15 months during the 48 months preceding unemployment

If you become unemployed, the amount of earnings-related allowance is based on your YEL income. If your YEL income is too low, your protection may be unexpectedly small – or you may not be entitled to benefits at all.

What if I am not a member of the Entrepreneur Fund?

If you are not a member of the Entrepreneur Fund, you can apply for general social security benefit from Kela starting 1 May 2026. If you already receive basic unemployment allowance or labour market support before this, your benefit will automatically be converted into general allowance.

You can receive general allowance if:

you are aged 18–64
you live permanently in Finland
you are registered with your local employment services
you are not entitled to earnings-related allowance, or you have already
received the maximum period of earnings-related allowance

General social security benefit is means-tested. This means that, for example, wage income or partial old-age pension may reduce the amount of allowance you receive.