Taxation of earnings-related daily allowance

Your net daily allowance may be smaller – remember to check your taxation!
When the year is coming to an end, it is recommended to check you tax percentage. The tax percentage affects the net amount of earnings-related daily allowance paid to you.

If you have an income ceiling in your tax card, you should check it towards the end of the year at the latest. If the income ceiling is exceeded, we will have to apply a higher percentage in tax withholding, which will decrease the payable amount of earnings-related daily allowance. That may come as an unwanted surprise with the approaching Christmas holidays. So remember to check your situation with the Tax Administration.

Taxation of unemployment allowance

Earnings-related daily allowance is a taxable benefit. When you receive earning-related daily allowance, we will pay the withholding to the Tax Administration. The amount of the withholding depends on your tax card.

The Tax Administration has decided separately that withholding for earnings-related daily allowance shall be levied in accordance with the withholding percentage and additional percentage determined for the salary. The difference is that the minimum withholding for daily allowance is 25 per cent, if you have not submitted a revised tax card for daily allowance to us.

Revised tax card for an unemployment benefit

When you receive earnings-related daily allowance, we recommend that you request a new tax card for the benefit from the Tax Administration and send it to us.

You can order a tax card using the electronic service of the Tax Administration. Please note that a revised tax card for a benefit is not listed separately. You will get one when you order a regular tax card and state how much earnings-related daily allowance you expect to receive.

You will find the amount of your daily allowance in the decision concerning it that you received from us. You will find that decision in the OmaYTK service. The amount of the daily allowance can also be estimated using our daily allowance calculator. When you multiply the daily allowance for one day by 258, the result is an estimate of the daily allowance paid during the whole year. You can use e.g. that estimate when you order a revised tax card.

In the same place where you state an estimate on the amount of the benefit you can enter Yleinen työttömyyskassa YTK as the recipient of tax information. Then the Tax Administration will forward the new tax information directly to us. If you are sending an application for daily allowance at the same time, please wait for one day before sending the application. Otherwise it may happen that we pay the daily allowance using the old tax information.

You can also send the tax card to us using the electronic OmaYTK service. There you will find a tax card button with which you can add a new tax card.

Income ceiling in the tax card

If you have an income ceiling in your tax card, you should check it towards the end of the year at the latest. If the income ceiling is exceeded, we will have to apply a higher percentage in tax withholding, which will decrease the payable amount of earnings-related daily allowance. That may come as an unwanted surprise with the approaching Christmas holidays. So remember to check your situation with the Tax Administration.

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