Updated Jan 4th 2021
Extension to the maximum duration of start-up funding remains in force until 31 December 2021.
Due to the coronavirus pandemic, start-up grants can temporarily be granted for up to 18 months if the establishing of the business has happened before 31.12.2020.
Start-up grants for a period of time of over 12 months are intended for entrepreneurs whose prerequisites for launching or establishing business activities during the normal start-up grant period are hindered by the coronavirus epidemic.
The TE Office grants a start-up grant in periods of no more than six months. Applications for an extension of the start-up grant must be submitted to the TE Office. As a rule, the application must be submitted to the TE Office before the end of the previous period.
As an entrepreneur, you are temporarily eligible to receive labour market subsidy due to the sudden and unexpected decline in demand caused by the coronavirus epidemic. This applies to all entrepreneurs, regardless of the type of business. A precondition for receiving labour market subsidy is that the full-time employment of the entrepreneur in the company has ended or that the income from business activity is less than EUR 1,089.67 per month per each entrepreneur working in the company. In order to receive labour market subsidy, the entrepreneur must register as a jobseeker with the TE Office. The TE Office issues Kela with a labour policy statement on the entrepreneur's right to labour market subsidy. The law is valid until 31.3.2021.
Due to the rapid preparation of the amendment and its fixed-term entry into force, it has not been possible to edit the TE Services' online service to meet the changed requirements. For this reason, the registration form still includes questions that you must answer in the same way as those who are registering for some other reason.
After you have submitted your registration, you will receive a notification which will provide you with instructions on how to proceed in your situation. Read and follow the instructions carefully.
The payment of a labour market subsidy requires that a person registers as a jobseeker at their TE Office and Kela receives a labour policy statement on their right to the labour market subsidy.
In practice, the application proceeds as follows:
The general terms and conditions of unemployment security, such as age limit, apply to the self-employed person's labour market support. Kela can pay the entrepreneur's labour market support until the end of the calendar month during which the jobseeker turns 65.
The fastest and easiest way to register as a jobseeker is to use the TE Services' E-Services online service. Instructions for entrepreneurs on registering as a jobseeker have been published on the TE Services website.
Kela has published an online application for labour market subsidy for entrepreneurs.
In order to receive the benefit, a person registered as a jobseeker during the fixed-term amendment to the Unemployment Security Act must be a jobseeker at the TE Office but full-time employment is not required during this period.
However, if the job search continues after the fixed-term act ending on 31.3.2021, full-time employment must be applied for as of 01/04/2021 in order to continue receiving the benefit. In this case, receiving the benefit also involves the obligation to accept any job offer presented to you by the TE Office.
Although the Unemployment Security Act does not require you to apply for full-time employment when registering as a jobseeker, by answering 'Yes' in the corresponding question you can speed up the processing of your unemployment benefit application. In this way, no automatic statement will be submitted to the party paying the unemployment benefit that would indicate that you do not have the prerequisites for the subsidy. TE Offices monitor the information in the online service and correct the information to comply with the valid Unemployment Security Act on a fixed-term basis.
An entrepreneur may apply for both the subsidy for sole entrepreneurs and unemployment security. They are not linked, meaning that obtaining one does not affect the size or availability of the other.