A member of the entrepreneur’s family who is covered by TyEL insurance is also considered an entrepreneur if he or she.
- owns 15% or more of the company alone or if he/she and his/her family members own 30% or more of the company in which he/she works in an executive position (director, member of the board of directors)
- owns alone or jointly with family members at least 50% of the company in which he/she works without holding a managerial position (as an employee)
Family members include the self-employed person’s spouse, as well as the unmarried partner, children and parents living in the same household as the self-employed person.
Note! From 1 July 2019, TyEL-insured persons working in a family-owned company who do not personally own a share in the company will be considered employees for unemployment insurance purposes. Previously, they were considered self-employed. Family members of TyEL-insured persons who do not own a share in a self-employed person should be transferred to the employee insurance scheme so that their employment in the family business continues to accrue unemployment insurance. The condition of employment fulfilled as a self-employed person can be carried over to the employees’ fund on the basis of the so-called “after-protection” if you join the new fund within one month of leaving the former fund.
If you own more than 0% of your family business, you will not be affected by the change in the law. In this case, you are still an entrepreneur on unemployment security. It also excludes people who work in a family-owned firm (and are therefore always entrepreneurs in the pension scheme, i.e. covered by the YEL-insurance).
Find out if you are considered an entrepreneur for unemployment security: the “Are you an entrepreneur?” test.