Entrepreneurs hit by corona can now apply for Kela's unemployment subsidy online
Self-employed people can now apply for a labour market subsidy through the online service of the Finnish Social Security Institution (Kela).
The labour market subsidy is the lowest benefit for the unemployed jobseekers that exists in Finland, and it is not linked to previous earnings while employed. Now, due to the Covid-19 outbreak, it can be also perceived temporarily by entrepreneurs.
In normal times, this benefit (the amount of which is 33.66 per day to be paid five days a week) is intended to support people who enter the labour market for the first time or who have not worked long enough to meet the requirements for other kind of support. It is also for the unemployed who can no longer receive basic or earnings-related unemployment allowance.
But the coronavirus epidemic and the damage caused to the economy and businesses has forced the Government to provide support also for those entrepreneurs who had to stop working or are suffering due to the sudden drop in demand.
Since 16 April, self-employed people can also apply online for the labour market subsidy for the period 16 March-30 June.
Applications for the labour market subsidy are made on a specific online form. According to Kela, "the online application has been modified to make it as easy and quick to complete as possible."
The requirements for entrepreneurs to receive temporary labour market subsidy payments are that full-time self-employment has ended or that the income from self-employment has dropped and is less than 1,089.67 euros per month.
How to apply
First of all, the entrepreneur must register as an unemployed jobseeker with the unemployment services (TE Office) and report on the termination of full-time employment or a decrease in income due to the coronavirus epidemic.
The unemployment services (TE Office) check that applicants meet the requirements.
After that, applicants must log in to Kela’s e-service using their online bank ID or a mobile ID.
Service only in Finnish
The online service is only available in Finnish and you can access it HERE
On the first page of the application form, answer Kyllä (Yes) to the question Haetko yrittäjälle maksettavaa työmarkkinatukea? (Are you applying for the labour market subsidy available to self-employed persons?).
Estimate of income required
During the process, applicants are asked for an estimate of their monthly business income for the period for which they are applying. Any other income of 300 euros onwards that applicants have will be adjusted, which means that will reduce the final amount of this labour market subsidy.
Work-related expenses such as the cost of tools and products purchased for sale can be deducted from the estimated income.
Self-employed persons registered with the TE offices as unemployed jobseekers by 15 April 2020 can apply for this benefit. And they can do it retroactively from 16 March, even if they were not yet registered at that time.
More information on this topic is available HERE