What income is taken into account in the adjustment?

• The basic salary you are paid for your work and any extras and compensations added to you basic salary, such as evening pay, overtime pay, standby and on-duty compensation, and fringe benefits or staff benefits subject to tax

• Holiday bonuses and holiday compensation

• Holiday pay based on part-time work

• Pay for the notice period if  the person’s application for unemployment benefit is not rejected because of their right to receive pay for the notice period

• Performance-based pay, such as commission, bonus and share of profits

• Insurance premium paid for endowment insurance by the employer

• Insurance premium for an individual voluntary pension insurance paid by the employer, for the part that it is subject to tax

• Grants and scholarships paid by the employer, for the part subject to tax

• Compensation based on immaterial rights, but not copyright compensation;

• Reward paid for shop steward or occupational safety delegate duties, and reward paid for cooperation in accordance with the Act on Cooperation within Undertakings

• Reward equivalent to salary

• Salary paid as pay security for the part that would be adjusted earned income if paid by the employer

• Service charge

• Income earned from working as an entrepreneur, excluding net income from silviculture calculated according to the Act on the Taxation of Farm Income

• Earned income part of dividend income

• Earned income part of hidden dividend

• Monetary compensation withdrawn from a working hours bank

• Other earned income equivalent to the above.

Types of income earned through work that we do not take into account in the adjustment process:

• Financial benefits paid by the employer on the basis of the employee’s established salary;
• Cash withdrawals from a working hours bank in so far as they can be matched to specific periods of time;
• Pay for the period of notice if the claimant’s right to receive pay for the notice period invalidates their claim for unemployment benefits;
• Holiday pay based on full-time work;
• Regular tax-free employee benefits;
• Individual voluntary pension insurance contributions, for the part that is not subject to tax;
• Compensation received for delayed payment of the final pay cheque;
• Damages;
• Money received as a gift;
• Grants and scholarships, for the part that is not subject to tax;
• Interest saved on employment-related loans;
• Additional benefits based on the employer’s health insurance policy;
• Payments received from the personnel fund;
• Profit-sharing cheques;
• Wages paid from state-guaranteed funds in the event of the employer’s insolvency, for the part that would, if paid by the employer, not be taken into account in the adjustment process;
• Income from employment-based shares;
• Income from the exercise of employment-based share options, except where the agreed strike price is substantially below the fair value of the share when the options are given and the options are exercised within one year or where the options are given as remuneration for work;
• Dividends from shares, for the part that is taxed as capital gains;
• Disguised dividends, for the part that is taxed as capital gains;
• Remuneration received for services rendered in a position of trust;
• Bonuses given in the form of shares of the employer company or a company in the same group of companies or some other similar financial consortium that are traded on a regulated market subject to supervision by the authorities or on a multilateral trading facility subject to supervision by the authorities, or as investment deposits or in another corresponding form; or instead of shares either partly or wholly in cash, provided that the value of such a bonus is dependent on the development of the value of the shares in question during a subsequent period of at least one year after the bonus has been promised;
• Copyright royalties;
• Any other income comparable to those mentioned above.