Does Kela pay you both general social security benefit and housing allowance? Here is how different types of income affect your benefits
If Kela pays you more than one kind of benefit, the types of income you have and any changes in them can affect your benefits in different ways. Read on for more information about what types of income affect general social security benefit and general housing allowance and when you have to tell Kela about changes in your income.
What types of income affect the general social security benefit?
Your general social security benefit (yleistuki) may be affected by income from work, capital income and many other benefits. Different types of income affect your general social security benefit in different ways.
Use our calculator to see how different types of income may affect your general social security benefit and to estimate your benefit amount.
Read on for more detailed information on how different types of income affect the general social security benefit.
If you get income from work (wages or salary), for example from a part-time job, Kela pays you adjusted general social security benefit. This means that the more you are paid for your work, the smaller your general social security benefit will be.
However, Kela will not deduct your pay in full from your general social security benefit. Half of your gross wages or salary (before taxes) will be deducted from your general social security benefit.
Capital income and other types of income may reduce the amount of your general social security benefit. They are types of income that Kela takes into account in the means testing that it applies to the general social security benefit.
Capital income includes forms of income such as rental income, income from forestry, interest income and dividend income.
Examples of other income that Kela also takes into account in the means test:
- informal care allowance
- compensations for family caregivers
- copyright royalties
- partial early old-age pension.
You can have up to EUR 311 per month in these types of income that impact the means test without it affecting your general social security benefit.
If you exceed the limit of EUR 311 per month, 50% of the amount that exceeds the limit will be deducted from your general social security benefit.
If you are paid other benefits, their full amounts will usually be deducted from your general social security benefit. An example of this kind of benefit is child home care allowance (kotihoidon tuki).
However, there are benefits that do not impact your general social security benefit. These include, for example:
- general housing allowance
- social assistance
- child benefit.
More information on how other benefits affect general social security benefit.
If you live with your parents and you do not meet the work requirement (työssäoloehto), their income may affect your general social security benefit.
More information on how parental income affects the general social security benefit.
What types of income affect general housing allowance?
The amount of general housing allowance (yleinen asumistuki) is affected by the total monthly income and assets of the entire household. This includes earned income and capital income as well as many Kela benefits.
Income (such as wages or salary) affects general housing allowance based on when it was earned. This means that it does not matter when the income was paid to a member of your household. Kela always takes income into account at its gross amount (before taxes).
- Earned income means, for example, salary, wages and income from self-employment.
- Capital income means, for example, dividends, capital gains and rental income.
- Kela benefits that affect your housing allowance include general social security benefit and sickness allowance (sairauspäiväraha). On the other hand, benefits such as social assistance (toimeentulotuki) and child benefit (lapsilisä) do not affect housing allowance.
- Income from forestry also affects housing allowance.
You can use our online calculator to estimate how your income affects your housing allowance.
Kela will calculate income for you from your assets if they exceed one of the following asset limits.
Your assets will affect housing allowance if
- you live in a household that consists of one adult aged 18 or over and you have assets of more than EUR 10,000
- you live in a household that consists of 2 or more adults aged 18 or over and your household has assets of more than EUR 20,000 in total.
If your household’s assets exceed one of the above limits of EUR 10,000 or EUR 20,000, we will take 20% of the excess into account as income.
However, the income and assets of children under 18 who live with their parents do not affect the amount of housing allowance.
If your income stays the same for at least 3 months after Kela has granted you housing allowance or reviewed it, we will calculate the amount of the allowance on the basis of that income.
Does your income vary?
Does your income vary for example because you do short temporary jobs? If your income does not stay the same for 3 months after Kela has granted you housing allowance or reviewed it, Kela will calculate an average income for you for the next 12 months. We take into account factors such as short temporary jobs or periods of unemployment when calculating the average income for you.
We will calculate an average income for you also if your income stays the same, but the source of it changes within 3 months for example from earned income to unemployment benefits.
When to report changes in income to Kela?
If Kela pays you general housing allowance, tell Kela if the total income of your household increases by at least EUR 400 per month. If that happens, Kela must review your housing allowance. You can report changes in the OmaKela e-service. By reporting changes you help make sure that Kela does not pay you too much in benefits and that you will not have to pay anything back later.
You can also apply for a review of your housing allowance if your household’s income decreases by at least EUR 200 per month. This is voluntary.
If Kela pays you general social security benefit, we get information on your earned income, capital income and other income from your tax information and the Incomes Register. We primarily use the information available in your most recently completed taxation.
Tell Kela about significant changes in your income if Kela pays you general social security benefit.
PS: Does Kela also pay you social assistance? Social assistance (toimeentulotuki) is affected by all income and assets that you and your family have. Social assistance is calculated on the basis of your net income, which means income after taxes and other obligatory fees have been deducted. Tell Kela if there is a change in this income.
More information
How income affects general social security benefit
How income affects general housing allowance
How income and assets affect social assistance