Labour market support for entrepreneurs to extend until June

The government on Thursday submitted a proposal to parliament to extend the right of entrepreneurs and self-employed persons to labour market support until 30 June 2021.

The aim is to ensure the livelihood of entrepreneurs and self-employed persons during the pandemic, said the Ministry of Economic Affairs and Employment in a press release.

Entrepreneurs and self-employed persons are entitled to labour market support because of the coronavirus pandemic under a temporary amendment to the Unemployment Security Act in force until the end of March.

“The coronavirus pandemic is making it very difficult for entrepreneurs and self-employed persons to work, and unfortunately there is no quick relief in sight. It is clear that we need to continue their right to labour market support,” said Minister of Employment Tuula Haatainen.

“Labour market support for entrepreneurs plays a significant role during the pandemic. In the autumn, on average 22,000 persons received the support per month,” said Haatainen.

Last year, the Social Insurance Institution of Finland (Kela) paid labour market support to 44,000 entrepreneurs and self-employed persons for a total amount of EUR 165.7 million.

In addition to the extension of labour market support for entrepreneurs, the government proposed to extend the increased exempt amount of the unemployment benefit and other exceptions to the unemployment security introduced because of the coronavirus epidemic.

The government proposals are related to the first supplementary budget proposal for 2021 and will be discussed in parliament alongside the supplementary budget proposal.