How earnings and capital income affect the general housing allowance
The amount of the general housing allowance is affected by the total gross incomes (income before taxes) of all persons who live in the household. Both taxable and tax-exempt incomes count as income.
Income that affects the housing allowance
The earned and capital income of all members of the household affect the general housing allowance. However, the incomes of a person aged under 18 are only taken into account if the underage person applies for housing allowance on their own or together with their spouse/partner.
The general housing allowance is affected by wage income and income paid in addition to the wage, for instance
- fringe benefits (such as housing, car or meals)
- overtime pay
- shift pay
- holiday pay.
A self-employed person’s income also affects the general housing allowance. As a rule, Kela estimates the amount of self-employment income based on each self-employed person’s earned income under the self-employed persons’ (YEL) or farmers’ (MYEL) pension insurance scheme.
The general housing allowance is also affected by capital income, including
- dividends and interest on deposits
- Kela counts as income the dividend and interest income of each member of the household if it exceeds EUR 12.02 per month.
- Dividends paid to an equity savings account count as income even if they are not withdrawn from the equity savings account.
- capital gains
- Recurring capital gains count as income.
- Capital loss is not deducted from capital gains.
- rental income, for instance
- rental income from apartment
- rental income from business premises
- income from ground rent
Income from forestry also affects the general housing allowance. The income from forestry is calculated on the basis of the average yield of forest stands. The income from the actual sale of forest holdings is not taken into account.
Income that does not affect the housing allowance
The following types of income do not affect general housing allowance:
- incidental income (such as inheritances, gifts or a one-time profit from a sale).
- compensations for expenses which are part of the wage, for instance kilometre and per diem allowances.