Amount and payment

The general housing allowance is 80% of the difference between the acceptable housing costs and the basic deductible. Persons with very low incomes need pay no basic deductible. If the amount of acceptable housing costs exceeds the maximum housing costs, the amount of the allowance will be calculated based on the maximum costs.

Calculation formula for the housing allowance

0.8 x (acceptable housing costs – basic deductible)

Example: One-person household living in Turku

Jaakko lives alone in his apartment which is located in Turku. He pays EUR 615 in rent each month. He has no other housing-related costs.
For purposes of the housing allowance, his income is considered to be EUR 696 per month.

The basic deductible is calculated according to the following formula:
0.42 x [EUR 696 – (EUR 597 + EUR 99 x 1 + EUR 221 x 0)] = 0.42 x (EUR 696 – EUR 696) = 0 e/kk.

Due to low income there is no basic deductible.
The maximum housing costs for single persons living in Turku are EUR 396 per month. Because the rent exceeds the maximum housing costs, the housing allowance is calculated according to the maximum costs.

The housing allowance is equal to 80% of maximum housing costs, or EUR 396 x 0.8 = EUR 317 per month.
Jaakko pays EUR 615 - EUR 317 = EUR 298 per month out of pocket.

Example: Three-person household living in Tampere

Nina and Juuso and their 14-year-old daughter Ursula live in Tampere. They pay EUR 720 in rent each month. For purposes of the housing allowance, the household’s income is considered to be EUR 2,403 per month.

The basic deductible is calculated according to the following formula:
0.42 x [EUR 2,403 – (EUR 597 + EUR 99 x 2 + EUR 221 x 1)] =
0.42 x (EUR 2,403 e – EUR 1,016) =
0.42 x EUR 1,387 = EUR 582.54 per month.

The maximum housing costs for a three-person household living in Tampere are EUR 734 per month. Because the rent is less than the maximum housing costs, the true housing costs are used as the basis of calculating the housing allowance.

The housing allowance is equal to 80% of the difference between the housing costs and the basic deductible, or 0.8 x (720 – 582.54) = 0.8 x 137.46 = EUR 109.97 per month.

The household has out-of-pocket housing costs of EUR 720 – EUR 109.97 = EUR 610.03 per month.

Payment

The general housing allowance is paid out on the first business day of the month. Any retroactive payments you are due are paid immediately.

Basic social assistance can be provided as an advance against an anticipated housing allowance, in which case the social assistance is deducted from the housing allowance.

The allowance is deposited either to your own bank account or that of your landlord subject to your authorisation.

Kela can pay housing allowance to the landlord even without your authorisation if you have not paid your rent two months in a row. Kela will contact the allowance recipient before paying the allowance to the landlord.

The housing allowance is tax-free income.

No housing allowance is paid if it is less than EUR 15 per month. Use an online calculator to estimate the amount of housing allowance you can get.

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