Determination of pay

Established income on the basis of which your benefits are calculated includes:

  • basic pay, annual holiday pay and pay for the period of notice;
  • pay for time off on the basis of hours saved in a working hours bank;
  • evening work bonus, shift work bonus, personal and job demands component, working condition bonus, Saturday and Sunday work bonus, night work bonus, overtime compensation, contract bonus, mid-week holiday compensation and other comparable wage supplements and compensations;
  • fees comparable to wages;
  • compensation for being on call;
  • profit-based pay, e.g. commission, bonus and share of profits;
  • taxable fringe or personnel benefits;
  • taxable compensation of expenses;
  • endowment insurance premium paid by the employer;
  • insurance premium on voluntary pension insurance paid by the employer, for its taxable parts;
  • fees paid to employee representatives and labour protection delegates and fees paid on the basis of cooperation between the employer and the employees under the Act on cooperation in State agencies and institutions (laki yhteistoiminnasta valtion virastoissa ja laitoksissa 651/1988);
  • pay received under pay security insofar as it would constitute income to be taken into consideration as the basis for earnings-related allowance, in the event it were paid by the employer;
  • service charges;
  • supplementary wages paid by a sickness fund;
  • private care support paid to an employed carer in addition to pay and any municipal supplements; and
  • other comparable income.

Income that is not based on employment, capital income and income which cannot be deemed established are NOT taken into consideration when determining established pay. Such income includes:

  • holiday pay, holiday bonus and holiday compensation;
  • financial benefit paid by the employer and deferred on the basis of the person’s established pay;
  • money gift from the employer;
  • non-taxable fringe or personnel benefits;
  • non-taxable compensation of expenses;
  • insurance premium on voluntary pension insurance, for its non-taxable parts;
  • interest benefit of employment-based loans;
  • pay for waiting periods;
  • compensation for damages;
  • scholarships and grants;
  • income from personnel funds;
  • profit distribution items;
  • pay received under pay security insofar as it would not constitute income to be taken into consideration as the basis for earnings-related allowance in the event it were paid by the employer;
  • additional benefits paid by sickness funds;
  • fees paid for holding a position of trust;
  • compensation based on intellectual property rights;
  • share option;
  • dividend income;
  • employment-based share issue;
  • disguised dividends;
  • compensation comparable to pay from the period of notice; and
  • other comparable income.

Pay security

The pay security system is designed to safeguard the employee’s employment-related receivables, in the event of the employer’s bankruptcy or insolvency. You can apply for pay security through an Employment and Economic Development Office.

If the processing of the pay security application has not been completed when you apply for unemployment allowance, the unemployment fund will determine the amount of unemployment allowance you can claim on the basis of wages paid. Inform your unemployment fund, when you are issued with the decision on pay security. Your fund will adjust the amount of your allowance on the basis of this decision.

More information on pay security on the Employment and Economic Development Office website:

Pay security

Sivu päivitetty viimeksi 30.12.2016

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