Taxation of earnings-related daily allowance

The benefits paid by the Unemployment Fund are considered taxable income. The Fund receives almost all its member’s tax rates for wage income from the Finnish Tax Administration at the beginning of each tax year (February 1st). If you have joined the Fund midway through the year or have a revised tax card, please send a copy of your tax card to the Fund. 

As instructed by the Finnish Tax Administration, the tax rate for earnings-related daily allowance is always at least 25 % if a tax card for wages is used. 

If you have a revised tax card for benefits, send your tax card to the Fund. Then the Fund can withhold your taxes based on the rate on the revised tax card without increasing the tax rate. 

The Unemployment Fund informs the Finnish Tax Administration of the benefits you have been paid as well as the tax withheld from these benefits. 

You can find more information about the taxation of benefits on the Finnish Tax Administration’s website.