Review of housing allowance

Kela's reviews the housing allowance every year. If a household’s circumstances change in mid-year, Kela reviews the housing allowance earlier.

Annual review

Kela sends you a letter and instructions about the annual review before the review is scheduled to take place.

You must submit an annual review application to Kela before the date of the review. If you fail to request an annual review in time, payment of the housing allowance is discontinued.

You can apply for an annual review online or on the application for housing allowance (AT 1e).

Interim review

If a household's circumstances change before the next annual review is due, Kela will perform an interim review.

Factors triggering an interim review and the timing of the review

  • Household's income increases by at least EUR 400 per month or decreases by at least EUIR 200 per month compared to the previous housing allowance decision.
    • The housing allowance is reviewed from the beginning of the month following the first full month of a change in income.

For example

Change in income on 1 February, housing allowance reviewed with effect from 1 March.
Change in income on 4 February, housing allowance reviewed with effect from 1 April.

  • Household's housing costs change by at least EUR 50 per month compared to the acceptable housing costs recognised in the previous housing allowance decision, or the household moves into a new home
    • The housing allowance is reviewed from the beginning of the first full month of a change in housing costs.

Example

A household moves into a new home on 1 June. The rental agreement goes into effect on 1 June and the household pays full month's rent for the new home. Housing allowance is reviewed with effect from 1 June.

  • The number of people in the household or its composition changes, or the household takes on a subtenant or a subtenant moves out.
    • The housing allowance is reviewed from the beginning of the first full month in which the change in circumstances is in effect.

Example

Number of household members changes on 25 May. Housing allowance is reviewed with effect from 1 June. - Number of household members changes on 1 June. Housing allowance is reviewed with effect from 1 June.

You must contact Kela also if a child in your household who has earnings or other income of his or her own reaches the age of 18 years. This is because the income of an adult child is taken into account when calculating the amount of the housing allowance.

Report the changes online or on the general housing allowance application form (AT 1e), which lists the required supporting documents.

If the amount of the housing allowance is reviewed upwards, Kela will pay the increased allowance from the beginning of the month preceding that in which the application was submitted. If the amount is reviewed down, the reduced amount will apply from the date of review.

As of 1 January 2019, Kela obtains salary information from The National Incomes Register. Kela uses this data when processing claims and applications. You will be contacted if additional information is required. However, please note that you must notify Kela of any changes in your income.