Types of income affecting the basic social assistance

All taxable and tax-free income available to the applicant and his or her family in the period for which assistance is claimed is relevant to social assistance, including income received from abroad.

The assessment is made on the basis of net income, which means income after taxes have been deducted.

The following count as income for purposes of social assistance:

  • Social security payments such as
    • labour market subsidy
    • basic unemployment allowance
    • earnings-related unemployment allowance
    • general housing allowance
    • financial aid for students (study grant, student loan and housing supplement)
    • parental allowances
    • child benefit
    • child care allowances
    • child support payments and child maintenance allowance
    • daily allowances payable under the Health Insurance Act and other laws
    • rehabilitation allowance
    • national pension
    • guarantee pension
    • earnings-related pensions
    • pensions received from abroad
    • pension assistance
    • job alternation compensation.
  • Earnings such as
    • wages and salaries
    • compensations and shares in profits (e.g., compensations for informal care providers, copyright royalties)
    • benefits in kind
    • payments supplementing a wage or salary (e.g., housing, car or food allowances, or overtime, shift pay or holiday pay)
    • earnings received from abroad
    • Please note: The earnings are estimated on the basis of the earnings for the previous months if the amount of earnings varies from month to month and the actual amount of earnings for the period that the application concerns is not yet known.
    • Please note: A deduction of up to EUR 150 is made from wage or salary income. This amount does not count as income when calculating the basic social assistance. The deduction is made on an individual basis from each family member's earnings.
  • Self-employment income and business startup grants
    • Self-employment income is estimated on the basis of information submitted by self-employed persons or otherwise available to Kela. Self-employed persons must submit a separate statement of income (form TO4e), including supporting documents.
    • Please note: A deduction for earned income of up to 150 euros is made from the amount of self-employment income. This amount does not count as income when calculating the basic social assistance. The deduction is made on an individual basis from each family member’s earnings.
  • Capital income such as
    • rental income
    • investment income
    • dividends
    • interest on deposits.
  • Other income such as
    • scholarships and grants
    • financial assistance or loans from parents or other private individuals
    • insurance settlements, compensations for damages and compensations in criminal matters
    • tax refunds
    • prize winnings
    • inheritances
    • child support
    • sales income.

.

Read more