Government proposes extension to labour market support for entrepreneurs
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. On 18 February 2021, the Government 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.
What are the conditions for an entrepreneur to be eligible for labour market support?
Labour market support is one form of unemployment benefits. Entrepreneurs and self-employed persons are entitled to labour market support under the temporary amendment when
- their full-time employment has ended or
- the monthly income from their entrepreneurial activities is less than EUR 1,089.67 per each person engaged in these activities as an entrepreneur.
The end of the person’s full-time work or the reduction in income must be due to the coronavirus epidemic.
Entrepreneurs and self-employed persons do not need to close down their business to be eligible for labour market support under the temporary amendment of the Unemployment Security Act.
Epidemic-related exceptions to unemployment security to be extended
In addition to the extension of labour market support for entrepreneurs, the Government proposes 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. They will be discussed in Parliament alongside the supplementary budget proposal.