Why is the wage used to calculate my daily allowance smaller than the actual wage I was paid when employed?

The monthly wage that forms the basis of earnings-related daily allowance is not the same as your monthly salary, since the employee’s pension contribution (TyEL) (4.40% in 2023) is deducted from the wages for the purposes of calculating the allowance. Also, not all of the wage components you were paid affect the amount of the daily allowance, such as holiday bonuses and tax-free income. For further information on which wage components contribute to your daily allowance, see monthly wage on which daily allowance is based.