Annual income

The annual income includes wages and salaries that have been paid during the reference period. Kela usually receives information on wages and salaries from the national incomes register, so this information need not be reported to Kela separately.  

In certain situations the allowance can be determined on the basis of the income for the last 3 calendar months of the reference period. Read more: Special circumstances

Salary for insurance purposes

If you have been working abroad during the reference period and a salary for insurance purposes has been determined for this period of employment, the salary for insurance purposes will be taken into account in the annual income instead of the salary actually paid. 

Example

Maija’s work disability starts 14 April 2020. The reference period is 1 March 2022–29.2.2021. During this period, Maija has received EUR 2,500 per month in wages (before taxes) and EUR 1,125 in holiday bonus (before taxes).

The annual income includes 12 months x EUR 2,500 + EUR 1,125 = EUR 31,125.*

The amount of the sickness allowances approximately EUR 65 per working day.

*) Insurance contributions (9,83 %) are deducted from the annual income.

 

Income under the self-employed persons' (YEL) and farmers' (MYEL) pension insurance schemes

The annual income for self-employed persons includes the confirmed income under the Self-Employed Persons’ Pensions Act (YEL) or the Farmers’ Pensions Act (MYEL) for the 12-month reference period. The annual income does not include wage income from one’s own company or income from self-employment.

If the confirmed income under the Self-Employed Persons’ Pensions Act (YEL) or the Farmers’ Pensions Act (MYEL) has changed during the reference period, the average confirmed income is used.

Example

Liisa’s work disability starts 15 February 2022. The reference period is 1 January–31 December 2021. The YEL income is EUR 20,000 per year.

The annual income includes the YEL income. 

The amount of the allowance for parents is approximately EUR 46 per working day.*

*) Estimate

Self-employment and paid employment

If you are both self-employed and in paid employment outside your own business, both these income sources are used as a basis for calculating the sickness allowance.

Benefit-based income

The benefit-based income is a calculated income determined on the basis of the average daily amount of certain benefits you have received in the 12-month reference period.

The benefit-based income only includes the following benefits when the period of award falls within the 12-month reference period:

  • unemployment benefit
  • job alternation compensation
  • sickness allowance
  • partial sickness allowance
  • maternity, paternity and parental allowances
  • special care allowances
  • sickness allowance on account of human cell, tissue and organ donation
  • rehabilitation allowance from Kela
  • rehabilitation allowance or rehabilitation increase provided under the earnings-related pension acts
  • disability pension provided under the earnings-related pension acts
  • disability pension provided under the National Pensions Act
  • guarantee pension as supplement to disability pension
  • adult education subsidy
  • adjustment pension or adjustment allowance for Members of Parliament
  • study grant.

Benefits paid to the employer are not included in the annual income because you have for the same period received wages that are included in the annual income.

Example

Pekka’s work disability starts 14 February 2022. The reference period is 1 January–31 December 2021. Pekka has received EUR 60.00 per day for 5 days per week in earnings-related unemployment allowance during this period.

Based on the average earnings-related allowance, the sickness allowance is approximately EUR 52 per day*. Sickness allowance is paid for 6 days a week.

*) Estimate

Compensations for loss of income

Compensations for loss of income awarded during the reference period are included in the annual income if the compensation is based on one of the following:

  • accident at work
  • occupational disease
  • traffic accident
  • patient injury
  • military injury
  • communicable disease under the Act on Communicable Diseases (sickness allowance on account of an infectious disease).

Compensations for loss of income are taken into account to the amount awarded.

The compensation is usually not included in the annual income if payment continues alongside a Kela benefit awarded for the same period. Compensations paid to the employer are not included in the annual income because you have for the same period received wages that are included in the annual income.