Who can join PAM?
You can join PAM if:
- you work in a private service sector;
- you are a supervisor in a service sector;
- you are studying for a service sector occupation;
- you are a self-employed person or entrepreneur.
You cannot join PAM if:
you are unemployed, on parental leave or on some other leave during which you are not receiving any earnings from employment.
PAM’s entrepreneurial membership is only open to self-employed people and entrepreneurs. They pay their PAM membership fees for their earnings that are used as the basis for their pension insurance premiums.
Self-employed people and entrepreneurs cannot be members of the Service Union United Unemployment Fund.
Barriers to membership for entrepreneurs
A person is considered to be an entrepreneur if he/she is obliged to take out insurance under the Self-Employed Persons’ Pension Act (YEL, 1272/2006) or the Farmers’ Pension Act (MYEL, 1280/2006). Any person covered by another statutory pension scheme is also considered to be an entrepreneur, when he/she works in a leading position in a company where he/she owns at least 15% or his/her family members or he/she together with the family members own at least 30% of the share capital (voting rights). Furthermore, a person will be recognized as an entrepreneur when he/she works in a non-leadership position in a limited liability company where he/she or his/her family members or he/she together with the family members own at least 50% of the share capital or the voting rights carried by the shares, or has otherwise obtained equivalent control of the company. Family members of an active partner in a limited partnership (Finnish ‘ky’) working for the company are considered to be entrepreneurs. The same also applies to family members of a sole proprietor.
This means that if you own shares in your employer company as specified above, you are, as a general rule, considered to be an entrepreneur in terms of unemployment security. As a result, you are not necessarily entitled to receive unemployment allowance from a union unemployment fund.
For more information on the unemployment security of entrepreneurs and their family members, please contact the Unemployment Fund for Entrepreneurs and the Self-Employed, tel. 0800 90 888 or www.ayt.fi.
‘Leading position’ refers to managing directors, board members or similar.
‘Family member’ refers to married spouses or common-law partners as well as the entrepreneur’s direct descendant or ascendant relatives (children, parents) living in the same household.