Amount and payment of general housing allowance

Calculate the amount of assistance that may be available to you

Please note that the calculator can only provide an estimate.

The general housing allowance will decrease in 2024

Parliament has approved cuts to the general housing allowance, which will reduce the rates of the allowance in 2024. Most of the changes entered into effect on 1 April 2024. If you already receive general housing allowance, these cuts will affect your allowance when your allowance is reviewed on 1 April 2024 or later. General housing allowance will no longer be available for owner-occupied homes as of 1 January 2025.

As of 1 April 2024, general housing allowance can cover up to 70 per cent of your housing costs.

However, if you started receiving general housing allowance before 1 April 2024, your allowance can still cover up to 80 per cent of your housing costs. Your housing allowance will be reduced the next time your household applies for a review of the housing allowance. When your housing allowance is reviewed on 1 April 2024 or later, the reviewed allowance will cover a maximum of 70 per cent of your housing costs.

General housing allowance is not available for all your housing costs. Instead, acceptable housing costs have been defined separately for different types of housing. You can get general housing allowance towards costs such as your rent.

How is the amount of general housing allowance calculated?

This is how the amount of general housing allowance is calculated as of 1 April 2024: A basic deductible is first subtracted from the acceptable housing costs. The housing allowance is the equivalent of 70 per cent of the remaining amount.

You can estimate the amount of housing allowance with the online calculator for general housing allowance. If you want the calculator to show an estimate of the amount of your housing allowance after the changes, select 1 April 2024 or a later date as the starting date of the allowance. Please note that the calculator only provides an estimate.

Maximum housing costs

The maximum amount of housing costs based on which you can get housing allowance is also specified by law. That amount is referred to as maximum housing costs.

The maximum housing costs represent the largest housing allowance you can get, even if your actual housing costs are higher.

Basic deductible

The size of the basic deductible depends on

the household's monthly income before deduction for taxes
the number of adults and children in the household.

The bigger the income is, the larger the deductible. If the income is very small, there is no basic deductible at all.

For more details, have a look at the calculation formula behind the housing allowance.

Person living alone in rental housing

Jaakko lives alone in a rental apartment located in Turku. He pays EUR 700 in rent each month. Jaakko’s income before taxes is EUR 279.38 per month. Because Jaakko’s income is small, there is no basic deductible.

Up to EUR 447 per month can be recognised as Jaakko’s housing costs. The housing allowance is calculated on the basis of these maximum costs. It is not calculated on the basis of the actual rent (EUR 700) paid by Jaakko.

The housing allowance that Jaakko gets is the equivalent of 70 per cent of the maximum housing costs, or EUR 447 x 0.70 = EUR 312.90 per month. Jaakko pays EUR 387.10 per month himself (EUR 700 – EUR 312.90 = EUR 387.10).

Taxation of the general housing allowance

The general housing allowance is tax-free income.

Payment of the general housing allowance

Kela pays the general housing allowance to your bank account on the first banking day of the month. If you are granted the housing allowance with retroactive effect, it is paid right away. The housing allowance is available retroactively for one month from the date of the application.

Kela sends information about the housing allowances paid out to the national incomes register within five days of the date of payment.

Housing allowances that are less than EUR 15 per month are not paid out.

If Kela grants basic social assistance as an advance against expected housing allowance payments, such social assistance is deducted from the housing allowance.

Payment of the housing allowance to the landlord

Kela can pay the housing allowance directly to your landlord’s account if you give your consent.

Kela can also pay the allowance directly to the landlord if you have not paid some or any rent for two months in a row. In situations like this, we will contact you before transferring your payments to your landlord.

Calculation formulas

Calculation formula for the housing allowance

As of 1 April 2024, the amount of general housing allowance is calculated as follows: 0.7 x (acceptable housing costs – basic deductible). Until 31 March 2024, the allowance is calculated as follows: 0.8 x (acceptable housing costs – basic deductible).

If the acceptable housing costs are larger than the maximum amount, the allowance is calculated on the basis of the latter.

Acceptable housing costs by type of housing

Maximum amount of housing costs

Calculation formula for the basic deductible

The basic deductible is calculated using the formulas below, where

T = the combined income of the household
A = the number of adults
L = the number of children
EUR 667 is the standard amount.

As of 1 April 2024	Basic deductible = 0,5 x [(T – (667 + 94 x A + 296 x L)]
1 January – 31 March 2024	Basic deductible = 0,42 x [T – (667 + 111 x A + 246 x L)]

Until 1 April 2024, the full rate of the housing allowance is available to households with a monthly income of no more than EUR 667 plus EUR 111 for each adult and EUR 246 for each child in the household. These amounts are tied to the National Pensions Index (About Kela).

As of 1 April 2024, the full rate of the housing allowance is available to households with a monthly income of no more than 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).

How to apply for housing allowance