Unemployment allowance – ask for a revised tax card if necessary
You may need a new tax card when you start receiving unemployment allowance.
Although the social benefits you receive are smaller than your previous pay, your withholding percentage rate will not necessarily be lower. This is due to the fact that benefits are not subject to the same tax-deductions as earned income.
Tax assessment of earnings-related unemployment allowance and basic unemployment allowance
If you do not request a new tax card, the unemployment funds and Kela will use the standard tax rates:
- Kela withholds 20% from your labour-market subsidy and basic unemployment allowances.
- The unemployment funds apply your usual withholding percentage as the rate for the payments of daily allowance based on your previous earnings. However, the percentage is always at least 25%.
Order a new tax card online
Estimate your total income for the current year and order a new tax card online. Wages received so far during this calendar year, and benefits, will affect the percentage rate. If, while unemployed, you receive occasional income from various sources, do part-time work or receive benefits in addition to unemployment allowance, you can estimate your withholding with this calculator.
If necessary, ask for a revised tax card.