Types of income affecting the amount of the housing allowance

Earned income, income from capital and several types of social benefits are counted as the income of a household.

Included in earned income are, among others

  • wages and salaries
  • benefits in kind
  • payments supplementing a wage or salary (e.g., housing, car or food allowances and overtime pay)
  • shift pay
  • holiday pay.

Included in income from capital are, among others

  • rental income
    • Home's maintenance fees and upkeep costs paid by the landlord are deducted from rental income.
  • dividends and interest on deposits
    • Interest and dividend income count as income if they exceed EUR 10.91 per month and per member of the household.
  • investment income
  • income from forestry:
    • The average annual yield of forest stands, multiplied by area, counts as income from forestry.
    • The income from the sale of forest holdings does not count as income.

The following social benefits, among others, count as income

  • basic unemployment allowance
  • labour market subsidy
  • earnings-related unemployment allowance
  • sickness allowance
  • rehabilitation allowance
  • maternity, paternity and parental allowances
  • child home care allowance
  • partial care allowance and municipal supplement
  • private day care allowance (counts as income for the child care provider)
  • study grant and adult education allowance
  • compensation for family caregivers
  • pensions and survivors’ pensions, including:
  • national pension
  • spouse’s pension
  • earnings-related pension
  • pension received from abroad
  • disability pension
  • rehabilitation subsidy.

For entrepreneurs, income is estimated on the basis of earned income subject to YEL (Self-Employed Persons' Pensions Act) or MYEL (Farmers' Pensions Act) insurance. If a self-employed person or business owner is not insured, an estimate of the income can be made on the basis of the start-up grant, minimum income, or information provided by the person. It is not necessary to send corporate financial statements to Kela.

Important information related to the coronavirus epidemic

Temporary unemployment benefits for self-employed persons: Effect on the general housing allowance

If the coronavirus epidemic has affected a self-employed person’s business and they have received a statement from the TE Office stating that they are entitled to labour market subsidy, the labour market subsidy and any assessment that they may have made as to their business income will, exceptionally, be taken into account when applying for housing allowance, even if the self-employed person is insured under the YEL (Self Employed Persons’ Pensions) Act.

If a member of the household cannot prove that he or she is unable to earn an income equal to the minimum income level (which is the same as the labour market subsidy with no increments for children) such a household member's monthly income is estimated on the basis of the minimum income level. However, no such estimate is made for persons who do not work for reasons of study or child care.

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