Government proposes to tighten conditions for receiving housing allowance for pensioners
The Finnish Government proposes that, as of 1 January 2025, income and assets will reduce the housing allowance for pensioners more than they do at present.
You can get housing allowance for pensioners if you are living permanently in Finland, you have a low income and you receive a pension which entitles you to the housing allowance for pensioners.
Pensions that entitle you to a housing allowance for pensioners include, for example:
old-age pension and early old-age pension paid by Kela
rehabilitation subsidy and disability pension paid by Kela
guarantee pension paid by Kela
surviving spouse’s pension paid by Kela
old-age pension and early old-age pension paid by an authorised pension provider
full rehabilitation subsidy, full disability pension and years-of-service pension paid by an authorised pension provider
surviving spouse’s pension paid by an authorised pension provider
surviving spouse’s pension or assistance pension paid on the basis of statutory worker’s compensation insurance, statutory motor liability insurance or the Military Injuries Act.
The following pensions entitle you to housing allowance for pensioners, if they have been granted on account of full incapacity for work and they are paid continuously (over a continuous period of at least 6 months):
occupational accident pension and life annuity paid on the basis of statutory worker’s compensation insurance
rehabilitation allowance paid on the basis of statutory worker’s compensation insurance (rehabilitation allowance entitles you to housing allowance for pensioners only when at least a year has passed since the accident).
Furthermore, benefits paid from other countries can entitle you to housing allowance for pensioners if they correspond to the above pensions and compensations.
You cannot get housing allowance for pensioners if, for example, you are paid only partial disability allowance or partial early old-age pension.
You can apply for housing allowance for pensioners
if you live alone
if you live with your partner
if everyone living in your home is being paid a pension that qualifies them for a housing allowance for pensioners.
If you cannot get housing allowance for pensioners, you may be entitled to general housing allowance.
In the case of married or cohabiting couples, a joint housing allowance is calculated based on the income of both partners and the housing costs of a shared home.
If only one person in the household receives housing allowance, the smallest amount that can be paid out is EUR 7.46 per month. If both partners receive housing allowance, the smallest amount that can be paid out is EUR 3.73 per month.
There is no tax on the housing allowance for pensioners.
The housing allowance for pensioners is calculated according to the following formula:
0.85 x (housing costs taken into account – (basic deductible + additional deductible))
If banks are closed on the scheduled payment date, the allowance is paid on the nearest preceding banking day.
The housing allowance is paid to the partner who is entitled to housing allowance. If both partners are entitled to housing allowance, the housing allowance is paid to both, half to one partner and half to the other.
For which housing costs can you get housing allowance for pensioners?
You can be paid housing allowance for pensioners towards the housing costs for your permanent home in Finland.
It depends on the type of home you live in what housing costs you can get housing allowance for.
In addition, there are municipal limits for your maximum housing costs. If your actual housing costs exceed the maximum limit for housing costs, your housing allowance is calculated on the basis of these maximum housing costs.
If you live in a rented home or are a subtenant, you can get housing allowance for the following housing costs:
rent
water and heating, if they are not included in the rent.
If you are renting out part of your rented apartment to a subtenant, your housing costs will be taken into account only to the extent of your share of the rent for the part of the apartment that remains at your disposal.
If water and heating costs are not included in the rent and there is no separate fixed water charge, the housing costs taken into account are determined based on a Government decree. In that case, the water and heating costs are not taken into account at their actual amounts. Read more about the water and heating costs taken into account.
If you live in an assisted living facility for the elderly or in a rented senior apartment, you can get housing allowance towards the rent and towards separate water and heating costs. Service charges included in the rent are not taken into account. If electricity is included in the rent, that part of the rent is not taken into account as housing costs when calculating the housing allowance.
If you live in an owner-occupied home in a housing cooperative, you can get housing allowance for the following housing costs:
maintenance charge
water and heating charges paid separately from the maintenance charge
interest on loans for buying and repairing your home
If water and heating costs are not included in the maintenance charge and there is no separate fixed water charge, the housing costs taken into account are determined based on a Government decree. In that case, the water and heating costs are not taken into account at their actual amounts. Read more about the water and heating costs taken into account.
If you live in a single-family detached house owned by you or your partner, you can get housing allowance for the following housing costs:
interest on loans for buying and repairing your home
water, heating and maintenance costs
ground rent.
Water, heating and maintenance costs are not taken into account according to the actual costs, but are instead determined based on a Government decree. The maintenance costs taken into account are defined as follows:
Maintenance charge (EUR per month and per single-family home)
If you move permanently into long-term institutional care within the public sector in Finland, Kela can pay you housing allowance for pensioners for a maximum of 9 months for the housing costs of your previous home.
If your partner moves permanently into long-term institutional care and you have both received housing allowance, you must notify Kela of the change. We will then review your housing allowance. Your partner's allowance will be withdrawn from the beginning of the month following the move into institutional care, and you will get a housing allowance for pensioners based on your income and housing costs alone.
If you live in a right-of-occupancy home or partial-ownership home, you can get housing allowance for the following housing costs:
residence charge or rent
water and heating charges paid separately from the residence charge
interest on loans for acquisition of the right-of-occupancy (right-of-occupancy home) or the partial-ownership home.
If water and heating costs are not included in the residence charge or rent and there is no separate fixed water charge, the housing costs taken into account are determined based on a Government decree. In that case, the water and heating costs are not taken into account at their actual amounts. Read more about the water and heating costs taken into account.
Water and heating costs
If water and heating costs are not included in the rent or residence charge and there is no separate fixed water charge, the housing costs taken into account are determined based on a Government decree. In that case, the water and heating costs are not taken into account at their actual amounts.
Water charges of up to EUR 32.40 per person per month are accepted as housing costs.
You can get housing allowance for the heating costs for a reasonably sized home. For those living alone, a reasonably sized home is up to 70 square metres. For couples, a reasonably sized home is up to 85 square metres.
Heating costs category 3: All other municipalities.
Housing costs for which you cannot get housing allowance
You cannot get housing allowance for pensioners for housing costs such as:
electricity bills included in the rent, maintenance charge or residence charge
other itemised charges included in the rent, maintenance charge or residence charge, such as charges for parking, garage, internet, cable TV, laundry room, cleaning, waste disposal, an emergency phone, or storage
rental security deposits or advance rent payments
a real estate agent’s commission
real estate tax
insurance related to housing.
Maximum housing costs
There is a maximum limit for the housing costs taken into account in the housing allowance for pensioners. If your housing costs exceed that limit, you will have to pay for the portion that exceeds the limit yourself. In addition to this, a basic deductible and, in some cases, an additional deductible will be subtracted from the housing costs taken into account.
The maximum limit for housing costs is different in different municipalities. Municipalities are divided into three categories: the Helsinki capital region, other large municipalities and other municipalities.
Maximum housing costs, EUR per year and per month
Location of the home
Maximum housing costs
Helsinki capital region
EUR 9,287 per year
about EUR 774 per month
Other large municipalities
EUR 8,541 per year
about EUR 712 per month
All other municipalities
EUR 7,493 per year
about EUR 624 per month
Helsinki capital region: Helsinki, Espoo, Kauniainen and Vantaa.
Other large municipalities: Hyvinkää, Hämeenlinna, Joensuu, Jyväskylä, Järvenpää, Kerava, Kirkkonummi, Kouvola, Kuopio, Lahti, Lappeenranta, Lohja, Nurmijärvi, Oulu, Pori, Porvoo, Raisio, Riihimäki, Rovaniemi, Seinäjoki, Sipoo, Tampere, Turku, Tuusula, Vaasa and Vihti.
Other municipalities: All municipalities other than those listed above.
Effects of income and assets on housing allowance for pensioners
Most of your income and assets will have an impact on how much housing allowance for pensioners you are entitled to. If you have a partner, your housing allowance will also depend on your partner's income and assets.
If your income exceeds a certain income limit, an additional deductible is subtracted from your housing costs on top of the basic deductible. When your and your partner's incomes have been added up, they are compared with the limit for the additional deductible. The additional deductible is the equivalent of 41.3% of your income in excess of the income limit.
In 2024 the income limits for the additional deductible are the following:
a person living alone EUR 10,280 per year
a person living with their partner, if the partner is not eligible for housing allowance EUR 14,746 per year
a person living with their partner, if the partner is eligible for housing allowance EUR 16,783 per year
‘Partner’ refers to a married spouse, a cohabiting partner or a partner in a registered partnership.
If you live alone, almost all of your income will have an impact on how much housing allowance you are entitled to.
If you have a partner, their income will also affect the housing allowance. ‘Partner’ refers to a married spouse, a cohabiting partner and a partner in a registered partnership.
Income is taken into account before taxes have been deducted, the so-called gross amount.
Types of income that affect the amount of your housing allowance for pensioners include:
earnings and income from pensions
unemployment allowances
income from assets (for example interest on deposits, rent income and income from forests).
Interest is deducted from the income, with the exception of interest on consumer credit, interest on loans relating to your own home and interest on the debts belonging to the estate of a deceased person.
Interest and dividend income affect the housing allowance for pensioners if they add up to a total of more than EUR 60 per year. Interest income is calculated by first subtracting EUR 2,000 from your deposits. Deposits up to EUR 2,000 are considered your disposable funds. Similarly, EUR 2,000 of your partner’s deposits are also earmarked as disposable funds. The interest on the remaining deposits is included in the income.
The pensioner’s housing allowance is not affected by, for example, the following income:
care allowances and disability allowances
income from a share in the estate of a deceased person
informal caregiver’s fee (with the exception of a substitute caregiver’s fee)
Any assets you have will have an impact on how much housing allowance for pensioners you are entitled to. If you have a partner, their assets will also affect the allowance. ‘Partner’ refers to a married spouse, a cohabiting partner and a partner in a registered partnership.
Assets which affect the housing allowance include the following:
real estate
forests
deposits
publicly listed stocks
shares in mutual funds
insurance savings
If you have deposits or savings, any amount exceeding EUR 2,000 is taken into account as your assets. This is because deposits or savings up to EUR 2,000 are considered your disposable funds. Similarly, EUR 2,000 of your partner’s deposits and savings are also earmarked as disposable funds.
However, the housing allowance for pensioners is not affected by, for instance
the single-family home where you live
share in an undistributed estate
share in a housing cooperative
Assets affect the housing allowance for pensioners. An income is calculated based on the assets, and this income is then taken into account when calculating the housing allowance. First, any outstanding debts are deducted from the assets. Then, 8% of the value of assets exceeding a certain asset limit is added to the income taken into account when calculating the housing allowance.
These asset limits are as follows:
for persons living alone, EUR 18,306
for married or cohabiting couples, EUR 29,290 per couple.
Aino's pensions total EUR 900 per month. She lives in a single-family detached home modernised in 1980. Her home is 100 square metres with modern conveniences and it is located in Mikkeli. Her maximum housing costs are calculated according to the location of her home (the category 'other municipalities') and heating costs category 2. Aino has no debt and no other assets besides her home.
Since Aino lives alone, the housing costs taken into account in determining her housing allowance correspond to the costs of upkeep for a 70-square-meter single-family home:
Heating
70 sqm x EUR 2.20 = EUR 154.00 per month
Water EUR 35.22 per month
Maintenance (Aino’s home has undergone modernisation after 1974) EUR 47.84 per month
In total, Kela accepts EUR 237.06 per month as the cost of maintaining Aino's single-family home.
The income limit for pension recipients living alone is EUR 856.67 per month. Aino's income exceeds this limit by EUR 43.33, which means that she will have to pay an additional deductible equal to 41.3% of the excess, or EUR 17.90 per month. The basic deductible is EUR 56.78 per month, and so Aino's total deductible that she will have to pay herself comes to EUR 74.68 per month.
Aino is paid a housing allowance for pensioners that covers 85% of the accepted costs exceeding the deductible.
The housing allowance paid to Aino: 0.85 x (237.06 – 74.68) = EUR 138.02 per month.
How to apply for housing allowance for pensioners
You can apply for housing allowance for pensioners either on a form or in the OmaKela e-service. OmaKela is currently only available in Finnish and Swedish. Kela’s forms are also available in English.
Apply in OmaKela
Apply for housing allowance in the OmaKela e-service (available in Finnish and Swedish).
Take photographs of the supporting documents and send them in OmaKela. From the application you can check which documents you should enclose with the application.
Have the housing allowance for pensioners adjusted if your circumstances change.
Visit the OmaKela e-service to see if your application has been decided, how much you will get and when your benefits will be paid. You can also see possible reminders concerning, for instance, any documents missing from your application. You will also get a decision by post if you have not given up paper mail.
Enclose additional documents in support of the application as necessary. The application form includes information on which supporting documents you need.
Send the application and any supporting documents by mail. The address is Kela, PL 10, 00056 KELA.
Visit OmaKela to see if your application has been decided, how much you will get and when your benefit will be paid. You will also see reminders of, for instance, supporting documents missing from your application. The decision notice will also be sent to your home address unless you have opted out of paper mail.
The decision notice is only in Finnish or Swedish. If you need help with something, you can call one of our English language customer service numbers 020 634 2650.
Things to remember when you apply for housing allowance for pensioners
You can apply for housing allowance for pensioners for a retroactive period of no more than 6 months from the date of your application.
For example, if you apply for housing allowance on 20th of July, the allowance can be granted to you retroactively from 1st of January.
Here are some examples of supporting documents you may need for your application:
your rental agreement, if Kela does not receive it directly from the landlord (see the list of landlords that provide rental agreements to Kela electronically, below).
If you submit an application for a review of your housing allowance, you do not need to send the rental agreement to Kela again, unless the terms of your agreement have changed.
a notification of an increase in rent, a maintenance charge bill or other proof showing specification of the rent or maintenance charge and other charges
details of any debts and interest on debts.
Additionally, you will need to attach an account of your own and your partner’s income and assets in the following situations:
You are applying for housing allowance for the first time and you have deposits.
Submit documentation on all your accounts and deposits, showing your account balance and interest.
You receive a pension from outside Finland.
Submit a copy of the decision letter in which you were awarded the pension, as well as a notice of payment or a certificate from the payer.
Kela obtains salary information from the national incomes register. We use that information when processing the application. We may ask for additional information, if necessary.
Landlords that provide rental agreements to Kela electronically
Some landlords provide information on rental agreements directly to Kela. If we receive information on your rental agreement from your landlord, you do not need to send us the rental agreement or details concerning the amount of your rent.
If your landlord is not on the list and you are applying for housing allowance for the first time, send your rental agreement together with your application. You must always provide your rental agreement if you have rented your flat from a private landlord. If you submit an application for a review of your housing allowance, you do not need to send the rental agreement to Kela again, unless the terms of the agreement have changed.
Aalto yliopiston ylioppilaskunta AYY
A-kruunu Oy
Annalan Vuokra-asunnot Oy
AREF FIN 1 Oy (Retta Oy)
Aries Housing Ky (Retta Oy)
As Oy Espoon Sellonhuippu
ASPA Palvelut Oy
ASPA Säätiö SR
ASPER HoldCo FI Oy (Retta Oy)
Auroranlinna
Auroratalo Oy
Axa investment managers Deutschland
Bo Fastigheter Ab
CoRE FIN 2017 6 Oy (Retta Oy)
Domus Arctica DAS
Erikoissijoitusrahasto Titanium Asunto (Retta Oy)
Erikoissij. rahasto Evli Vuokratuotto
Espoon asunnot Oy
Espoon Diakoniasäätiö Edistia
Etelä-Suomen Kodit Oy, 2966719-1
FAB Kronoby Bostäder
FAb Pedersöre Bostäder Kiinteistö Oy
Fastighets Ab Jägarbacken
Fastighets Ab Victoria 4 (Retta Oy)
Fidus topaasi Oy
Fidus villa asunnot Oy
Fidus vuokratalot Oy
Fidus vuokratalot II Oy
Helsingin Diakonissalaitoksen säätiö sr
Helsingin kaupungin Asuntoyksikkö
Helsingin kaupungin vuokra-asunnot HEKA
Helsingin seudun opiskelija-asuntosäätiö HOAS
HOAS Kiinteistöosakeyhtiö Juus-Fastighets Ab
Hoivatie Oy
Holding 1 Espoo Oy (Retta Oy)
Holding 2 Lahti Oy (Retta Oy)
Holding 3 Vantaa Oy (Retta Oy)
Holding 4 Kerava Oy (Retta Oy)
Holding 5 Tuusula Oy (Retta Oy)
Hopeakodit Oy KAS
Hyvinkään vuokra-asunnot
Hämeenlinnan Asunnot Oy
IC Kodit V (Icecapital)
IC Kodit VI (Icecapital)
IL-Kiinteistöt Oy
Invalidiliitto ry
Janakkalan Asunnot Oy
Juli Olarin Noste Oy
Juli Olarin Ylväs Oy
Jyväskylän Eläkeläisten Tuki r.y. (Retta Oy)
Jyväskylän Katulähetys ry
Jyväskylän vuokra-asunnot Oy
Järvenpään kaupunki/Vuokra-asunnot
Järvenpään Mestariasunnot Oy
Kaakkois-Suomen Asunnot Oy
Kangasalan kaupunki
KAS asunnot Oy
KAS Kodit Oy
Keski-Suomen opiskelija-asuntosäätiö KOAS
Keuruun vuokra-asunnot liikelaitos
Kiimingin Nuorisoasuntoyhdistys ry
Kiinteistöosakeyhtiö Antinaravat
Kiinteistöosakeyhtiö ESPOON ULLANMÄENTIE 13 (Nuorisosäätiö/ Nuorisoasuntojen isännöinti oy)
Kiinteistöosakeyhtiö Graniittikodit
Kiinteistöosakeyhtiö Hiirosen Jänönkulma
Kiinteistöosakeyhtiö Jermu
Kiinteistöosakeyhtiö Juus-Fastighets Ab
Kiinteistöosakeyhtiö Jyrkkälänpolku (Turku)
Kiinteistöosakeyhtiö Järvenpään Pajalan Mylly
Kiinteistöosakeyhtiö Kaarinan vuokratalot Oy
Kiinteistöosakeyhtiö Kiiltohaka
Kiinteistöosakeyhtiö Kulhankari
Kiinteistöosakeyhtiö Kummatti
Kiinteistöosakeyhtiö LAHDEN KAUNOKKI (Nuorisosäätiö/ Nuorisoasuntojen isännöinti oy)
Kiinteistöosakeyhtiö LAHDEN KUUSAMA (Nuorisosäätiö/ Nuorisoasuntojen isännöinti oy)
Kiinteistöosakeyhtiö LAHDEN UNIKKO (Nuorisosäätiö/ Nuorisoasuntojen isännöinti oy)
Kiinteistöosakeyhtiö LAHDEN VANAMO (Nuorisosäätiö/ Nuorisoasuntojen isännöinti oy)
Kela periodically reviews the housing allowance for pensioners. The review is carried out when two years have passed since you were granted housing allowance or the housing allowance was last reviewed
We will send you a letter and instructions about the review of the housing allowance about two months before the review is scheduled to take place.
Submit an application for a review of your housing allowance before the scheduled review. The date will be stated in the letter. Submit an application for a review of your housing allowance even if nothing has changed in your circumstances.
Please note that if we do not receive the application for a review in time, we will have to terminate your housing allowance.
You can receive reimbursement for the costs of private healthcare services and prescription medicines prescribed for an illness. Read about the kinds of expenses for which you can get reimbursement. Do not forget to apply for social assistance for your medicine expenses, if you need it.
Do you use Kela taxis?
Kela reimburses taxi rides to persons who need help with transport to healthcare providers due to their health or inadequate access to transport. Read more about when you can use a Kela taxi.
Do you need everyday support because of a disability or severe illness?
The care allowance for pensioners is intended as support for pensioners with a disability or chronic illness in their daily life, functional ability, rehabilitation and care.
When money is tight
If your pension or other income are not enough to cover your necessary living expenses, you should find out if you can get social assistance.
Current topics
Government proposes to tighten conditions for receiving housing allowance for pensioners
The Finnish Government proposes that, as of 1 January 2025, income and assets will reduce the housing allowance for pensioners more than they do at present. The earlier index freeze will also continue.
