Earnings-related allowance is taxable income. We can use either your salary tax card or a revised tax card for a benefit, obtained separately by you.
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. This will also allow you to determine the appropriate tax rate specifically for your earnings-related allowance.
If we use a salary tax card for withholding tax on your earnings-related allowance, the tax rate is always at least 25%, even if the tax rate stated on your tax card is lower.
When you order a revised tax card for social benefits in MyTax, the tax card will automatically be sent to the fund within two working days. You do not need to send it separately. When ordering the tax card, please choose the KOKO unemployment fund as the payer of the benefit.
You do not need to send us the salary tax card automatically mailed to your home address by the Tax Administration, as unemployment funds receive this information directly from the Tax Administration. If you have joined the KOKO fund during the current year and are applying for a daily allowance for the first time, it is advisable to provide the tax card, as your data may not have been transferred.
Further information on taxation of earnings-related daily allowance.