How do social benefits affect the earnings-related daily allowance?

A social benefit you receive may affect the earnings-related daily allowance in three different ways. A social benefit may prevent the payment of daily allowance or it may reduce the payable daily allowance. It is also possible that a benefit has no effect on the earnings-related daily allowance.

The following social benefits prevent the payment of earnings-related daily allowance:

  • maternity, paternity or parental allowance
  • special care allowance and special maternity allowance
  • education support
  • unemployment pension
  • full disability pension granted in Finland
  • career pension
  • full old-age pension
  • early old-age pension
  • individual early retirement pension
  • guarantee pension as supplement to pension
  • pension subsidy
  • daily allowance under the Health Insurance Act
  • daily allowance under the Accident Insurance Act
  • compensation for loss of income under the Motor Liability Insurance Act and Accident Insurance Act
  • rehabilitation allowance and corresponding compensation for loss of income
  • farm closure allowance
  • change of generation pension

The following social benefits reduce the amount of earnings-related daily allowance:

  • home care allowance
  • flexible care allowance
  • financial aid for studies
  • partial disability pension
  • disability pension benefit paid from another country
  • part-time pension
  • old-age pension (not full)
  • old-age pension which has not been granted on the basis of full years of service
  • additional pension arranged by the employer
  • farm closure pension
  • farm closure compensation
  • compensation for loss of income and disability pension under the Motor Liability Insurance Act which has not been granted on the basis of complete disability
  • daily allowance under the Military Injuries Act which has not been granted on the basis of complete disability
  • compensation paid under the Military Accidents Act
  • an amount corresponding to the supplementary annuity under the Employment Accident Insurance Act which has not been granted on the basis of complete disability
  • accident pension which has not been granted on the basis of complete disability
  • compensation for loss of income under the Act on Compensation for Criminal Damages
  • compensation for loss of income under the Patient Injury Act
  • guarantee pension if it has been granted to supplement one of the abovementioned benefits

Home care allowance

We will deduct the home care allowance from your daily allowance, if the home care allowance is paid to you or your spouse. We will not deduct the allowance paid to your spouse from your daily allowance, if:

  • your spouse is also unemployed
  • your spouse receives maternity, paternity or parental allowance in addition to the home care allowance
  • your spouse cares for the child himself/herself and is therefore not entitled to receive unemployment benefit.

Your spouse is required to actually care for the child at home. If the child is regularly in care outside home just part-time, we will have to deduct the home care allowance from your earnings-related daily allowance.

Your spouse’s studying and even small-scale entrepreneurial activities or part-time working will result in us deducting the home care allowance granted to your spouse from your earnings-related daily allowance.

The following benefits do not affect daily allowance:

  • housing allowance under the Housing Allowance Act (408/1975)
  • housing allowance under the Act on the Housing Allowance for Pensioners (571/2007)
  • child benefit
  • partial home care allowance
  • flexible care allowance paid to your spouse
  • additional allowance for home care paid by the municipality
  • family pensions including care and additional care pensions
  • care allowance under the Basic Pension Act
  • allowance for the care of a close relative paid by the municipality
  • partial early old-age pensio
  • subsidies under the Family Carer Act
  • pensioner’s care allowance under the Disability Benefits Act (570/2007)
  • life annuity and supplementary annuity and special cost compensations under the Military Injuries Act
  • disability allowance under the Disability Benefits Act (570/2007)
  • income support
  • military benefit under the Act on Military Benefits (781/1993)
  • special cost compensations under the Accident Insurance Act and Military Injuries Act
  • special cost compensations under the Motor Liability Insurance Act
  • handicap allowance under the Accident Insurance Act
  • additional war pensions
  • additional pensions you have taken for yourself

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