How do income and assets affect general housing allowance?

The rules for calculating the general housing allowance in the Åland Islands differ from those used in the rest of Finland. In the Åland Islands, housing allowance covers a maximum of 80% of your acceptable housing costs. The amount of housing allowance is calculated as follows: 0.8 x (acceptable housing costs – basic deductible).

The basic deductible is calculated using the formula below, where

T = the combined income of the household
A = the number of adults
L = the number of children

0.42 x [T - (667 + 111 x A + 246 x L)]

Students from the Åland Islands are not eligible for general housing allowance if they live in rented housing. This is the case regardless of whether they study in the Åland Islands or elsewhere in Finland.

The housing allowance is calculated on the basis of your monthly income. We calculate your income as it relates to the housing allowance either as income received continuously or as an amount averaged over a certain period of time. We take into account the household’s earned income and capital income. Many Kela benefits are also taken into account as income.

Your income affects the housing allowance for the period when the income was earned. This means that the date when the income was paid to you does not matter. For example, if you apply for housing allowance from the beginning of September, the income you earned in August will not be taken into account.

Income is always taken into account as gross income.

If your income stays the same over 3 months

If your income remains the same for at least 3 months after housing allowance has been granted or reviewed, we will calculate the amount of housing allowance on the basis of that income. This is called continuous income.

If your income does not stay the same over 3 months

If your income does not remain the same for 3 months after housing allowance has been granted or reviewed, we will calculate an average income for you.

We will calculate an average income in order to take into account situations such as studies, short temporary jobs, or periods of unemployment. However, if the reason your income varies is working hours or increments, but the source of your income is still unchanged, the income is considered to be continuous income.

When calculating your average income, the first step is to add up all the income you are expected to receive over the next 12 months. The sum is then divided by 12, and the result is your average monthly income, which is used as the basis for calculating your housing allowance.

We estimate an average income for one year at a time, because housing allowance is usually granted until further notice and then reviewed once a year.

You can also use our online calculator to estimate the effect of your income on the amount of housing allowance available to you.

If your income increases or decreases

Let us know if your household’s income increases by EUR 400 per month or more, or if it decreases by EUR 200 per month or more. Report the changes in OmaKela e-service (available in Finnish and Swedish) or on the form Application - General housing allowance AT 1e (PDF).

Find out what changes you must report to Kela.

The total earned and capital income of all members of the household affects the general housing allowance. Earned income means salary or wages or the income of a self-employed person.

Both taxable and tax-exempt income counts as income. Taxable income is taken into account as gross income.

However, the income of a person under the age of 18 is only taken into account if they apply for housing allowance alone or together with their partner.

These types of income affect your housing allowance

Wage or salary income

The general housing allowance is affected by wage or salary income and income paid in addition to the wage or salary, for instance

• fringe benefits (such as housing, car or meals)
• overtime pay
• shift pay
• holiday pay.

Self-employment income

A self-employed person’s income also affects the housing allowance. As a rule, we will estimate the amount of self-employment income on the basis of a self-employed person’s earned income under the self-employed persons’ (YEL) or farmers’ (MYEL) pension insurance scheme (tyoelake.fi).

Capital income

The housing allowance is also affected by capital income, including

• dividends and interest on deposits
  • Any interest and dividend income a member of the household has on the shares in a book-entry account will be taken into account as income if it exceeds EUR 12.02 per month.
  • Returns withdrawn from an equity savings account will be taken into account as income if there are regular, recurrent withdrawals.
• capital gains
  • Recurring capital gains count as income.
  • Capital loss is not deducted from capital gains.
• rental income, for instance
  • rental income from an apartment
  • rental income from business premises
  • income from ground rent.

Income from forestry

Income from forestry also affects the housing allowance. The income from forestry is calculated on the basis of the average yield of forest stands. The income from the sale of forest holdings is not taken into account.

Read about the way the assets of your household may affect the amount of housing allowance.

The amount of the general housing allowance can be affected by various other benefits, such as unemployment benefits and study grants. However, there are also benefits, such as social assistance and child benefits, which do not affect the housing allowance. The housing allowance is also not affected by student loans.

Benefits are taken into account at their gross amount. The housing allowance is affected by the benefits received by all members of the household.

Examples of benefits that affect the housing allowance:

• Unemployment benefits: basic unemployment allowance, labour market subsidy and earnings-related unemployment allowance
• Benefits during sickness and rehabilitation: sickness allowance, rehabilitation allowance and rehabilitation subsidy
• Benefits for students: study grant and adult education allowance
• Family benefits: pregnancy allowance, parental allowance, child home care allowance, partial care allowance, flexible care allowance and private day care allowance (if you are a paid child care provider and the private day care allowance is paid to you)
• Pensions: national pension, earnings-related pension, surviving spouse’s pension, pension received from abroad, and disability pension.

Examples of benefits and compensations that do not affect the housing allowance:

• Disability allowance for persons under 16 years of age
• Disability allowance for persons aged 16 years or over
• Grants and subsidies, unless paid towards securing a living
• Care allowance for pensioners
• Disability indemnity
• Child increase payable with a national pension
• School transport subsidy
• Compensations for expenses and maintenance allowances
• Child support and child maintenance allowance
• Orphan’s pension
• Child benefit
• Informal caregiver’s fee
• Student loan
• Housing supplement for students
• Supplementary allowance for the purchase of study materials
• Provider supplement to the study grant
• Compensations for the costs of family care
• Front-veteran’s supplement and additional front-veteran’s supplement
• Conscript’s allowance
• Compensations paid under the Act on Injuries Sustained in Military Service
• Social assistance
• Compensations paid on account of a disability or impairment
• Maternity grant.

The assets of your household may affect the amount of your housing allowance. The income of a person under 18 is taken into account only if they apply for housing allowance alone, or together with their partner.

Your assets will affect the housing allowance if

• you live in a household that consists of one adult and you have assets of more than EUR 10,000
• you live in a household that consists of two or more adults and your household has assets of more than EUR 20,000 in total.

If your household’s assets exceed the above limits of EUR 10,000 or EUR 20,000, we will take 20% of the excess into account as income.

If your household has assets of EUR 50,000 or more, no housing allowance is paid at all. However, long-term debts, such as housing loans and student loans, will be deducted from the assets first.

Example of the way assets affect housing allowance

Pekka lives alone in a rental apartment. He owns an insurance-based investment product valued at EUR 15,000.  Since Pekka lives on his own, the amount of his assets that exceeds EUR 10,000 is included in the calculation of his income. In his case, the exceeding amount is EUR 5,000 (EUR 15,000 – EUR 10,000).

Out of that EUR 5,000, 20% makes EUR 1,000, which is the amount taken into account as income for Pekka. This means that the part of Pekka's assets that affects his general housing allowance is EUR 1,000 per per year, or EUR 83.33 per month. In addition to that, Pekka’s earnings and capital income are also taken into account as income.

Assets that affect the general housing allowance

• Deposits. However, a deduction of EUR 2,000 for disposable income is made from account deposits. The deducted sum does not affect the general housing allowance. The deduction is personal, which means that it is made from each household member's deposits.
• Real estate, not including a holiday home in own use
• Shares in a housing company
• Publicly listed shares and shares in investment funds
• Business and farming assets as well as shares in corporate assets
• Forest holdings
• Bonds or equivalent
• Insurance savings

However, assets such as shares in an undivided estate, deposits in an ASP (home saver’s bonus) account or assets that are not at the disposal of members of the household are not taken into account.

The amounts are rounded up to the nearest euro.

If the household consists of

• 1 adult, the income limit is EUR 1,844 per month
• 1 adult + 1 child, the income limit is EUR 2,630 per month
• 1 adult + 2 children, the income limit is EUR 3,348 per month
• 1 adult + 3 children, the income limit is EUR 3,982 per month
• 1 adult + 4 children, the income limit is EUR 4,574 per month.

If the household consists of

• 2 adults, the income limit is EUR 2,428 per month
• 2 adults + 1 child, the income limit is EUR 3,146 per month
• 2 adults + 2 children, the income limit is EUR 3,780 per month
• 2 adults + 3 children, the income limit is EUR 4,372 per month.

If the household consists of

• 3 adults, the income limit is EUR 2,944 per month
• 3 adults + 1 child, the income limit is EUR 3,578 per month
• 3 adults + 2 children, the income limit is EUR 4,170 per month.

If there are more than 5 persons in your household, the income limits applicable to your household will be higher than those shown in the examples. You can estimate the amount of housing allowance with the online calculator for general housing allowance.

The amounts are rounded up to the nearest euro.

If the household consists of

• 1 adult, the income limit is EUR 1,612 per month
• 1 adult + 1 child, the income limit is EUR 2,318 per month
• 1 adult + 2 children, the income limit is EUR 2,966 per month
• 1 adult + 3 children, the income limit is EUR 3,568 per month
• 1 adult + 4 children, the income limit is EUR 4,132 per month.

If the household consists of

• 2 adults, the income limit is EUR 2,116 per month
• 2 adults + 1 child, the income limit is EUR 2,764 per month
• 2 adults + 2 children, the income limit is EUR 3,366 per month
• 2 adults + 3 children, the income limit is EUR 3930 per month.

If the household consists of

• 3 adults, the income limit is EUR 2,562 per month
• 3 adults + 1 child, the income limit is EUR 3,164 per month
• 3 adults + 2 children, the income limit is EUR 3,728 per month.

If there are more than 5 persons in your household, the income limits applicable to your household will be higher than those shown in the examples. You can estimate the amount of housing allowance with the online calculator for general housing allowance.

The amounts are rounded up to the nearest euro.

If the household consists of

• 1 adult, the income limit is EUR 1,506 per month
• 1 adult + 1 child, the income limit is EUR 2,162 per month
• 1 adult + 2 children, the income limit is EUR 2,778 per month
• 1 adult + 3 children, the income limit is EUR 3,356 per month
• 1 adult + 4 children, the income limit is EUR 3,910 per month.

If the household consists of

• 2 adults, the income limit is EUR 1,960 per month
• 2 adults + 1 child, the income limit is EUR 2,576 per month
• 2 adults + 2 children, the income limit is EUR 3,154 per month
• 2 adults + 3 children, the income limit is EUR 3,708 per month.

If the household consists of

• 3 adults, the income limit is EUR 2,374 per month
• 3 adults + 1 child, the income limit is EUR 2,952 per month
• 3 adults + 2 children, the income limit is EUR 3,506 per month.

If there are more than 5 persons in your household, the income limits applicable to your household will be higher than those shown in the examples. You can estimate the amount of housing allowance with the online calculator for general housing allowance.

You can get housing allowance if you live permanently in a rented home located in Finland. When applying for housing allowance, you must have a written rental agreement.

For which housing costs can you get housing allowance?

Housing allowance can be paid for the following housing costs:

• rent
• water and heating charges that are not included in the rent

Rent

You can get housing allowance towards the rent.

If the rent includes electricity, we will deduct the electricity charge from the rent. In other words, the housing allowance does not cover the amount you pay for electricity.

Water charges

You can get housing allowance for water charges if you pay them separately and on top of the rent. Up to EUR 20 per person and per month is accepted.

Heating charges

You can get housing allowance for heating charges if you pay them separately and on top of the rent.

For one-person households, the amount of heating charges accepted is EUR 46 per month. If the household consists of more than one person, EUR 16 per month is added for each additional person.

In certain regions, a higher amount of heating costs is accepted:

• In Etelä-Savo, Pohjois-Savo and Pohjois-Karjala, up to EUR 48 per month is accepted as heating charges for a one-person household. EUR 17 per month is added for each additional person.
• In Pohjois-Pohjanmaa, Kainuu and Lapland, up to EUR 50 per month is accepted as heating costs for a one-person household. EUR 17 per month is added for each additional person.

Housing costs for which you cannot get housing allowance

You cannot get housing allowance for certain housing-related costs which are paid for separately. These include

• electricity
• sauna
• laundry room
• parking
• internet access
• furniture.

Only the costs that you or a member of your household pay for are accepted as housing costs. This means, for example, that if your employer or a company pays part of your housing costs, that part is not taken into account in your housing allowance.

If you have a subtenant, the amount of rent paid by the subtenant is deducted from your accepted housing costs.

Rental security deposit

When you move into a rented apartment, you are usually required to post a rental security deposit, which is the equivalent of a few months’ rent, or to pay rent in advance. If the income and assets available to you are not enough to cover the deposit, you can apply to Kela for social assistance to cover it.

You can get housing allowance if you live in a right-of-occupancy home located in Finland.

For which housing costs can you get housing allowance?

Housing allowance can be paid for the following housing costs:

• residence charge
• water and heating charges that are not included in the rent

Residence charge

You can get housing allowance towards the residence charge.

Water charges

You can get housing allowance for water charges if you pay them separately and on top of the residence charge. Up to EUR 20 per person and per month is accepted.

Heating charges

You can get housing allowance for heating charges if you pay them separately and on top of the residence charge.

For one-person households, the amount of heating charges accepted is EUR 46 per month. If the household consists of more than one person, EUR 16 per month is added for each additional person.

In certain regions, a higher amount of heating costs is accepted:

• In Etelä-Savo, Pohjois-Savo and Pohjois-Karjala, up to EUR 48 per month is accepted as heating charges for a one-person household. EUR 17 per month is added for each additional person.
• In Pohjois-Pohjanmaa, Kainuu and Lapland, up to EUR 50 per month is accepted as heating costs for a one-person household. EUR 17 per month is added for each additional person.

Housing costs for which you cannot get housing allowance

You cannot get housing allowance for certain housing-related costs which are paid for separately. These include

• interest payments on housing loans
• electricity
• sauna
• laundry room
• parking
• internet access
• furniture.

Only the costs that you or a member of your household pay for are accepted as housing costs. This means, for example, that if your employer or a company pays part of your housing costs, that part is not taken into account in your housing allowance.

You can get housing allowance if you live in a part-ownership home located in Finland. In order to qualify for the allowance, you must have a written rental agreement.

For which housing costs can you get housing allowance?

Housing allowance can be paid for the following housing costs:

• rent
• water and heating charges that are not included in the rent

Rent

You can get housing allowance towards the rent.

Water charges

You can get housing allowance for water charges if you pay them separately and on top of the rent. Up to EUR 20 per person and per month is accepted.

Heating charges

You can get housing allowance for heating charges if you pay them separately and on top of the rent.

For one-person households, the amount of heating charges accepted is EUR 46 per month. If the household consists of more than one person, EUR 16 per month is added for each additional person.

In certain regions, a higher amount of heating costs is accepted:

• In Etelä-Savo, Pohjois-Savo and Pohjois-Karjala, up to EUR 48 per month is accepted as heating charges for a one-person household. EUR 17 per month is added for each additional person.
• In Pohjois-Pohjanmaa, Kainuu and Lapland, up to EUR 50 per month is accepted as heating costs for a one-person household. EUR 17 per month is added for each additional person.

Housing costs for which you cannot get housing allowance

You cannot get housing allowance for interest payable on a loan taken out to make the down payment on a part-ownership home.

You also cannot get housing allowance for certain housing-related costs which are paid for separately. These include

• electricity
• sauna
• laundry room
• parking
• internet access
• furniture.

Only the costs that you or a member of your household pay for are accepted as housing costs. This means, for example, that if your employer or a company pays part of your housing costs, that part is not taken into account in your housing allowance.

How is housing allowance calculated?

Housing allowance covers a maximum of 70% of your acceptable housing costs. Examples of acceptable housing costs include rent and water charges. A basic deductible is first subtracted from your acceptable housing costs.

The amount of general housing allowance is calculated as follows: 0.7 x (acceptable housing costs – basic deductible).

If the household consists of

• 1 person, a maximum of EUR 563 per month is accepted as housing costs
• 2 persons, a maximum of EUR 808 per month is accepted as housing costs
• 3 persons, a maximum of EUR 1,019 per month is accepted as housing costs
• 4 persons, a maximum of EUR 1,188 per month is accepted as housing costs
• more than 4 persons, a maximum of EUR 1,188 is accepted as housing costs + EUR 148 per month for each additional person.

If one of the household members is disabled and needs a particularly large amount of space on account of assistive devices or an outside caregiver, we will accept housing costs for one person more than the actual size of the household.

Example of maximum housing costs

Maija lives alone in a rented apartment in Helsinki. She pays EUR 800 per month in rent. Up to EUR 563 per month can be accepted as housing costs for a person living alone in Helsinki.

This means that Maija’s housing allowance is calculated according to the maximum housing costs for the municipality where she lives, EUR 563 euro. The housing allowance is not calculated on the basis of her actual rent (EUR 800).

How is housing allowance calculated?

Housing allowance covers a maximum of 70% of your acceptable housing costs. Examples of acceptable housing costs include rent and water charges. A basic deductible is first subtracted from your acceptable housing costs.

The amount of general housing allowance is calculated as follows: 0.7 x (acceptable housing costs – basic deductible).

If the household consists of

• 1 person, a maximum of EUR 447 per month is accepted as housing costs
• 2 persons, a maximum of EUR 652 per month is accepted as housing costs
• 3 persons, a maximum of EUR 828 per month is accepted as housing costs
• 4 persons, a maximum of EUR 981 per month is accepted as housing costs
• more than 4 persons, a maximum of EUR 981 is accepted as housing costs + EUR 134 per month for each additional person.

If one of the household members is disabled and needs a particularly large amount of space on account of assistive devices or an outside caregiver, we will accept housing costs for one person more than the actual size of the household.

Example of maximum housing costs

Tommi and Pauliina live together in a rented apartment in Turku. They pay EUR 750 per month in rent. Because Tommi and Pauliina are a couple, they are part of the same household and get general housing allowance as a couple.

Up to EUR 652 per month can be accepted as the housing costs of a 2-person household in Turku. This means that the maximum housing costs in the municipality, EUR 652, is used as the basis of calculating the housing allowance for Tommi and Pauliina. Their housing allowance is not calculated on the basis of the rent they pay (EUR 750).

How is housing allowance calculated?

Housing allowance covers a maximum of 70% of your acceptable housing costs. Examples of acceptable housing costs include rent and water charges. A basic deductible is first subtracted from your acceptable housing costs.

The amount of general housing allowance is calculated as follows: 0.7 x (acceptable housing costs – basic deductible).

If the household consists of

• 1 person, a maximum of EUR 394 per month is accepted as housing costs
• 2 persons, a maximum of EUR 574 per month is accepted as housing costs
• 3 persons, a maximum of EUR 734 per month is accepted as housing costs
• 4 persons, a maximum of EUR 875 per month is accepted as housing costs
• more than 4 persons, a maximum of EUR 875 is accepted as housing costs + EUR 129 per month for each additional person.

If one of the household members is disabled and needs a particularly large amount of space on account of assistive devices or an outside caregiver, we will accept housing costs for one person more than the actual size of the household.

Example of maximum housing costs

Pia and Eero live together in a rented apartment in Pori. They pay EUR 650 per month in rent. Because Pia and Eero are a couple, they are part of the same household and get general housing allowance as a couple.

Up to EUR 574 per month can be accepted as the housing costs of a 2-person household in Pori. This means that the maximum housing costs in the municipality, EUR 574, is used as the basis of calculating the housing allowance for Pia and Eero. Their housing allowance is not calculated on the basis of the rent they pay (EUR 650).

How is housing allowance calculated?

Housing allowance covers a maximum of 80% of your acceptable housing costs. Examples of acceptable housing costs include rent and water charges. A basic deductible is first subtracted from your acceptable housing costs.

The amount of general housing allowance is calculated as follows: 0.8 x (acceptable housing costs – basic deductible).

If the household consists of

• 1 person, a maximum of EUR 470 per month is accepted as housing costs
• 2 persons, a maximum of EUR 687 per month is accepted as housing costs
• 3 persons, a maximum of EUR 871 per month is accepted as housing costs
• 4 persons, a maximum of EUR 1,032 per month is accepted as housing costs
• more than 4 persons, a maximum of EUR 1,032 is accepted as housing costs + EUR 141 per month for each additional person.

If one of the household members is disabled and needs a particularly large amount of space on account of assistive devices or an outside caregiver, we will accept housing costs for one person more than the actual size of the household.

The basic deductible is calculated using the formula below, where

T = the combined income of the household
A = the number of adults
L = the number of children

Basic deductible = 0.5 x [T – (667 + 94 x A + 296 x L)]

The full rate of housing allowance is available on an income of EUR 667 plus EUR 94 for each adult and EUR 296 for each child in the household. These amounts are tied to the National Pensions Index (About Kela section).

If you live in the Åland Islands, the basic deductible is calculated using a different formula.