Entrepreneur Fund membership fee to be cut

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The Financial Supervisory Authority has confirmed the Entrepreneur Fund’s proposal for membership fee for 2022. As per our proposal, next year our membership fee will be 2,1 % of the share of any yearly work income exceeding Euro 5,800. So, at its lowest, the Entrepreneur Fund’s tax-deductible membership fee will be Euro 13,60 per month, i.e., Euro 163,23 per year.

According to Fund Manager Merja Jokinen, lower unemployment rates as well as favourable economic development within the fund enabled lowering membership rates. Among fund members, unemployment rates did not burst to meet the worst expectations during the corona period, and general unemployment rates have clearly declined. Right now, unemployment rates are on the same level where they were during the later part of 2019, before the corona pandemic hit.

”Economic outlooks for 2022 are also moderately good, and we do not expect unemployment rates to pick up to any significant extent during next year”, Merja Jokinen says. 

Along with reduced unemployment numbers, Merja Jokinen underlines the fact that the fund’s economy is on a solid basis. ”We have been working systematically to enhance the fund’s financial solidity to a level, where surprisingly increasing unemployment rates will not put pressure to increase membership fees on a short-term basis”, Merja Jokinen says.

”We also try to keep our membership fee as stable as possible to avoid any surprising yearly increases”, the Fund Manager continues.

According to Merja Jokinen, any grounds for reducing membership fee levels are always based on careful consideration in order to avoid having to go back to increased fees next year. ”The corona period was exceptional and a source of uncertainty, but we strongly believe that we will slowly be going back to more normal conditions.” 

Increased lower limit for entrepreneurs’ unemployment security

The lower income limit required to obtain entrepreneurs’ unemployment security will also change next year as a result of a change in the correction coefficient applied. The lower income limit for accumulating the work requirement set for entrepreneurs is Euro 13,573 per year. In other words, as an entrepreneur, you are covered by unemployment security and you can buy insurance from the Entrepreneur Fund, if the work income which your pension insurance (YEL or MYEL work income or partial business owners’ TyEL salary) is based on is at least Euro 13, 573 per year.

Examples of work income, membership fee and daily allowance in 2022

In accordance with the above decision by the Financial Supervisory Authority, next year, our membership fee will equal 2,1 percent of the share of your yearly work income exceeding Euro 5,800, which your unemployment insurance is based on. What is the easiest way to find out what this means in your case? There is a simple calculation formula.

Example: If your yearly work income is Euro 20,000, first deduct the sum 5,800. Now you have 14,200, of which 2,1 percent is 298,20. This amount, Euro 298,20, will be your yearly membership  fee. Membership fees are deductible in your personal taxation.

Work
income
Membership
fee
Membership
fee
Daily
allowance
Daily
allowance
Income-related daily allowance
vs. basic allowance paid by Kela
€/year€/month€/year€/day€/month€/month
13,57313,60163,2342,65916,98175,23
14,00014,35172,2043,39932,89191,14
15,00016,10193,2045,14970,51228,76
16,00017,85214,2046,881,007,92266,17
17,00019,60235,2048,631,045,55303,80
18,00021,35256,2050,371,082,96341,21
19,00023,10277,2052,111,120,37378,62
20,00024,85298,2053,861,158,00416,25
21,00026,60319,2055,601,195,40453,65
22,00028,35340,2057,351,233,03491,28
23,00030,10361,2059,091,270,44528,69
24,00031,85382,2060,841,308,06566,31
25,00033,60403,2062,581,345,47603,72
26,00035,35424,2064,321,382,88641,13
27,00037,10445,2066,071,420,51678,76
28,00038,85466,2067,811,457,92716,17
29,00040,60487,2069,561,495,54753,79
30,00042,35508,2071,301,532,95791,20
32,50046,73560,7075,661,626,69884,94
35,00051,10613,2080,021,720,43978,68
40,00059,85718,2088,091,893,941,152,19
45,00068,60823,2091,971,977,361,235,61
50,00077,35928,2095,852,060,781,319,03
55,00086,101,033,2099,722,143,9814,02,23
60,00094,851,138,20103,602,227,401,485,65
65,000103,601,243,20107,472,310,611,568,86
70,000112,351,348,20111,352,394,031,652,28
75,000121,101,453,20115,232,477,451,735,70
80,000129,851,558,20119,102,560,651,818,90
85,000138,601,663,20122,982,644,071,902,32

Daily allowance paid by the fund is inclusive of basic daily allowance, Euro 34,50. Unemployment daily allowance receivers supporting children under 18 years will be paid daily allowance plus child increase, which amounts to Euro 5,41 for one child, a total of Euro 7,95 for two children and a total of Euro 10,25 for three or more children.

Income security: increased exempt amount to continue until end November

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Parliament has approved a law amendment, according to which the provisions regarding increased exempt amount will continue to end of November. Eased requirements regarding commuting and relocation allowances will also continue.

Exempt amount means that earnings-related daily allowance receivers may earn € 500 per month (€ 465 per four week application period) until earnings start affecting their daily allowances. For earnings exceeding € 500, each euro earned will reduce the daily allowance by 50 cents. Without increase, the exempt amount is € 300 per month.

According to the law amendment, the exempt amount € 500 concerns application periods starting no later than November 30, 2021. Accordingly, for application periods starting December 1, 2021 or later, the exempt amount is € 300.

You may use our calculator to get an estimation on how part-time work or short-term jobs affect your daily allowance.

The calculator observes the exempt amount € 500, and also shows how salaries exceeding the exempt amount as well as maximum and minimum amounts affect your daily allowance. Maximum amount means that the total of daily allowance and paid work cannot exceed the salary, which your earnings-related daily allowance is based on. Minimum amount means that the amount of daily allowance must always at least equal the amount which would be paid as a basic daily allowance by KELA.

Travel time requirement for commuting and relocation allowances to remain at two hours

Unemployed persons may qualify for a commuting and relocation allowance, if they accept employment involving a workplace located far away from their present place of residence. The commuting and relocation allowance is between € 726 and € 1045 per month. Allowances can be paid for a maximum of two months.

By way of this temporary law amendment, the travel time requirement for a two-way commuting distance has been reduced from three hours to two hours. This amendment applies to full-time work. For part-time work, the commuting distance has already been two hours. You meet this two hour commuting distance if your travel time to work, one-way, is more than one hour.

As a result of the law amendment, a commuting and relocation allowance for full-time work can be obtained based on a commuting distance of more than two hours, providing that your employment relationship starts no later than November 30, 2021. For employment relationships starting December 1, 2021 or later, a commuting distance of three hours applies.

Labour market subsidy for entrepreneurs to continue until end November

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The Finnish Parliament has approved a law amendment, based on which entitlement to labour market subsidy for entrepreneurs alongside ongoing entrepreneurial business will continue. Even with ongoing business, entrepreneurs may be entitled to a labour market subsidy from Kela, in case their business revenue has decreased as a result of the corona virus pandemic. Kela can pay a labour market subsidy to entrepreneurs until November 30, 2021.

The Entrepreneur Fund can nevertheless pay an earnings-related daily allowance only to fund members who have terminated their entrepreneurial business.

In order to be paid a labour market subsidy or an earnings-related daily allowance, applicants must register as jobseekers with the TE Office online. Benefits can be applied for retroactively for as long as three months, but benefits can be paid only for time periods when applicants have been registered with the TE Office.

Under which circumstances can entrepreneurs be paid a labour market subsidy?

Entrepreneurs can be temporarily entitled to a labour market subsidy based on a sudden and unexpected decline in market demand as a result of the corona virus pandemic. Labour market subsidy is a form of employment benefit.

A labour market subsidy can be paid, if

  • an entrepreneur’s fulltime work has ended, or
  • revenues from entrepreneurial business are below € 1,089,67/month per person working for the company in an entrepreneurial position.

Full-time work must have ended, or revenues must have been reduced as a result of the coronavirus pandemic. Payment of this subsidy does not require entrepreneurial business to be terminated.

In order to be paid a labour market subsidy, applicants must register as jobseekers with the TE Office, and the TE Office must give its labour market policy statement to Kela regarding each applicant’s entitlement to labour market subsidy. Each applicant can then proceed to apply for a labour market subsidy from Kela. More information: https://www.kela.fi/tyottomyysturva-yrittaja

Jarno Ankerman nominated bravest entrepreneur in Finland

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In July, the Entrepreneur Fund arranged its fifth on-line competition to identify the bravest entrepreneur in Finland. Multi-talented Janne Kataja, also known as the funniest guy in Finland, acted as a figurehead for this on-line competition. For Janne Kataja, entrepreneurship is a way of life.

According to Merja Jokinen, Fund Manager, the competition aimed at identifying a persistent toiler – one who does not give up, wear out or listen to depressing opinions expressed by sceptics.
Merja Jokinen thinks there is bit of creative madness and typically Finnish resilience in every entrepreneur.

– This corona time has shown how important entrepreneurs are for our community. As a result of all  whirlwinds of change we have recently experienced globally and in work life, entrepreneurs have been required to show even more courage to take risks and to carry out their own broad-minded business ideas. We collected a record number, almost 300 votes, this year. Today, we have congratulated our winner, village storekeeper Jarno Ankerman from Luhanka, in charge of his store Luhangan Kyläkauppa Oy.

– Jarno has turned his village store into an actual service center, which has had an immense impact on the community of just short of 700 residents, says Merja Jokinen.

Winning the contest came as a surprise for Jarno Ankerman. He was aware of the competition, but never thought he would have a chance to step out as the bravest entrepreneur.

– I thought like who would possibly vote for me, but when I heard I had been selected as a winner, and with a landslide victory, too, it certainly felt great. It is really important that an entrepreneur from a small community can win as well, says Ankerman.

SYT is now the Unemployment Fund for Entrepreneurs

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Following the merger with AYT at the turn of the year, SYT has changed its name as of June 18, 2020. Our new name is the Unemployment Fund for Entrepreneurs,

According to Merja Jokinen, Fund Manger, the new name underlines new times ahead for a more powerful fund with focus on standing up for small businesses and sole traders. In terms of speech, it is also a better alternative compared to the previous abbreviation.

– Our official name is now Unemployment Fund for Entrepreneurs, but for marketing purposes we use the short-form Entrepreneur Fund. Our customers will see the change in the form of new logos and a renewed company image. All our activities and services will remain unchanged. We will renew our website and our e-mail addresses in the coming autumn. Until then, our present website will continue operating as usual, Merja Jokinen says.

The Entrepreneur Fund wants to become known as an organisation which understands the everyday challenges its members are facing as entrepreneurs and individuals. Our brand renewal coincides with the 25-year Anniversary of Unemployment Security for Entrepreneurs, and most importantly strives to display the fund’s significant role in the Finnish society.

– The symbol section of our logo – which is composed of arches to mirror turns and movement – reflects this objective. The corona crisis has shown that the future cannot be foreseen. In a global, fast-changing community, business operations may come to an end for reasons beyond one’s own control. Joining the Entrepreneur Fund is one way of controlling risks involved in entrepreneurship and to secure subsistence in case of unemployment, Merja Jokinen says.

The Unemployment Fund for Entrepreneurs (Entrepreneur Fund) is an independent unemployment fund founded by Finnish entrepreneurs in 1995. The fund’s objective is to improve quality of life and security for entrepreneurs by offering optional unemployment insurance. At the moment, the fund has some 30,000 members representing a variety of branches of industry and companies of all sizes. Working as an entrepreneur, trade association or trade organisation membership does not guarantee unemployment security. In order to qualify for earnings-related allowance in case of unemployment, entrepreneurs must join the Entrepreneur Fund. The Entrepreneur Fund pays unemployment benefits to an average of 800 members monthly. The Fund’s general conditions and the level of unemployment security have been defined in the Act on Unemployment Funds and in the Unemployment Security Act. The fund’s operations are subject to oversight by the Financial Supervisory Authority.