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Effect of social benefits

Social benefits can affect your earnings-related allowance. Some benefits prevent the payment of earnings-related allowance, some reduce the full amount of the allowance, and some have no effect at all.

All social benefits applied for and received must be reported to the fund in order to determine whether the benefit will affect the amount of your earnings-related allowance. However, child benefit, housing allowance or social assistance need not be reported.

Information about pensions and benefits income paid on and
after 1 January 2021 must be reported to the Incomes Register. Unemployment
funds will report all paid benefits also to the Incomes Register starting from
January 2021.

Benefits that prevent the payment of earnings-related allowance include

  • several pensions
  • full or partial sickness allowance
  • maternity, paternity or parental allowance
  • rehabilitation allowance

Benefits that reduce an earnings-related allowance include

  • partial disability pension
  • child home care allowance (family-specific)
  • flexible care allowance
  • disability pension received from another country

Social benefits that do not affect the payment of earnings-related allowance include

  • child benefit
  • housing allowance
  • survivors’ pensions, including assistance and supplementary assistance pensions
  • partial early old-age pension
  • social assistance under the Social Welfare Act
  • disability benefits
  • care allowance under the National Pensions Act
  • maternity benefit
  • adoption benefit