Is a light entrepreneur an employee or an entrepreneur?

Updated

This is an important question when it comes to social security. Although "light entrepreneur" isn't an official legal term, different authorities interpret your status somewhat differently.

  • Tax authority: You're an employee. You receive wages and pay tax via your tax card.
  • Pension system (YEL): You're an entrepreneur. If your work income exceeds the threshold, you need to take out YEL insurance.
  • Unemployment security (TE Office/Kela): You're generally considered an entrepreneur, but there are exceptions in unemployment security (e.g. a 4-month trial period or part-time activity).

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