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The earnings deduction means that when the amount of the housing allowance is calculated, the sum of EUR 300 per month is deducted from the total earned income of each member of the household. The deduction can be made from salary, self-employment income and farm income.
It is made separately for each member of the household.
If the income that qualifies you for the earnings deduction is less than EUR 300 per month, the full amount of that income is deducted, which means that for housing allowance purposes, you are considered to have no income at all.
You can get the earnings deduction as long as you have qualifying income. There is no maximum limit.
Kela estimates the amount of self-employment income based on each self-employed person’s earned income under the self-employed persons’ (YEL) or farmers’ (MYEL) pension insurance scheme. If a self-employed person or business owner is not insured under the YEL Act, an estimate of the income can be made on the basis of the start-up grant, minimum income, or information provided by the person. An earnings deduction can be made from these types of income as well.