Employer: report absences to the Incomes Register

9/14/2020

Absence data reported to the Incomes Register is used, for example, to grant different benefits and allowances. When data about absences can be found in the Incomes Register, income earners receive quick and accurate decisions, and the employer does not need to submit any subsequent clarifications to different authorities.

Only report absences of income earners in an employment relationship. It is also recommended that absence data about income earners in short-term employment relationships, such as seasonal workers, are reported. If an income earner is in an assignment relationship, absence data does not need to be reported.

This is how absence data reported to the Incomes Register is used

  • Unemployment funds primarily retrieve earnings payment data about their members applying for unemployment security from the Incomes Register. If unpaid absence data is not reported, unpaid days will also be regarded as working days. If absence data is therefore not reported, unemployment funds may make incorrect decisions.
  • When employers report absence data through the Incomes Register, they can use the same report to apply for daily allowances from the Social Insurance Institution (Kela). As a result, employers save time and trouble, as they would otherwise need to apply for Kela’s daily allowances through other channels. Furthermore, any incomplete data may result in too high or too low an allowance.
  • Earnings-related pension insurers use the Incomes Register's absence data to determine pensions and to monitor disability pensions if the data has been reported. If absence data is missing, pension payments may be late, as earnings-related pension providers need to request additional information from employers or pension recipients.
  • Accident insurance companies need data to determine compensation for loss of earnings (daily allowance, rehabilitation allowance, occupational accident pension). If an employer has not reported absence data to the Incomes Register, the data will be requested from the employer. By reporting absence data to the Incomes Register, employers do not need to respond to additional queries from insurance companies, and income earners are reimbursed more quickly. As a result, any component paid to the employer is also more quickly known and available for deduction.
  • Occupational safety and health authorities monitor the fulfilment of employers’ obligations regarding absences. Absence data helps to identify whether employers have actually paid wages to their employees during absence periods or whether there is a justified reason for the non-payment of wages.
  • The Employment Fund uses absence data to calculate the amount of adult education allowances paid to income earners. If absence data has not been reported to the Incomes Register, the amount of allowances paid may be smaller than to which an allowance recipient is entitled. As a result, the allowance recipient needs to request rectification for the decision they have received. This causes additional work for the allowance recipient and their employer.
  • The Patient Insurance Centre needs absence data to allocate compensation correctly to compensation applicants. If compensation is determined on the basis of earnings payment data preceding a disability period and the period includes unpaid absences, the compensation received by the income earner may be lower than it should be. Furthermore, if absence data is missing, the Patient Insurance Centre will need to verify absence data directly from the employer.
  • The Development and Administration Centre for ELY Centres and TE Offices (KEHA Centre) needs absence data for the payment of pay subsidies. If absence data has been reported, information about the wages to be reimbursed is directly correct. As a result, employers do not need to provide any additional information.

What absences need to be reported?

Only report full-day absences to the Incomes Register. Only report part-day absences if an absence started during the working day. Full-day absences related to part-time work are not reported. There may be several absence periods during a single pay period, and chronologically, they may overlap in full or in part, and have different causes of absence. There can be only one cause for one period of absence.

Deadlines for reporting

Report absence data on the next pay period’s report at the latest. For example, absence data for pay period 01/2020 must be reported no later than on the report for pay period 02/2020. In this way, data users, such as allowance processors, gain access to absence data in a timely manner.

If necessary, correct any incorrect reports

Correct any incorrect report by submitting a replacement report to the Incomes Register.

Read more: Correcting data in the Incomes Register