Earnings-related allowance is taxable income. For withholding tax, we can apply either a tax card determined for employment income or a revised tax card applied for a benefit.
As an allowance recipient, we recommend that you apply for a revised tax card for a benefit for the taxation of your earnings-related allowance. In this case, we will apply the tax rate indicated on the tax card. If we use a salary tax card for withholding tax on your allowance, the tax rate is at least 25%, even if the tax rate stated on your tax card is lower.
You can order a revised tax card for social benefits in MyTax. When ordering the tax card, please choose the KOKO unemployment fund (Korkeasti koulutettujen työttömyyskassa KOKO) as the payer of the benefit.
Read more: Taxation of earnings-related allowance