Daily allowance

Initially, daily allowance will be paid on the basis of inability to work if it lasts for at least three consecutive days excluding the claim date. Daily allowance is not payable for the claim date. Daily allowance is paid for up to one year from the date of the claim event for all calendar days. 

For the first four weeks from the claim date, the amount of daily allowance corresponds to the amount of the employee’s sick pay. In such a case, daily allowance is paid to the employer. If the employee has not received sick pay for the above-mentioned period, daily allowance is determined in accordance with the earnings for the four weeks preceding the claim event. 

After the first four weeks, the amount of daily allowance will be 1/360 of the injured person’s annual earnings

Daily allowance can be paid as a partial compensation if the inability to work and reduction in earnings are partial. The reduction in the ability of work must be at least 10 per cent.  

The Workers’ Compensation Act provides for daily allowances for students, schoolchildren and self-employed persons. Likewise, it contains provisions on daily allowance in situations where a person receiving old-age or disability pension manifests an occupational disease.  

Daily allowance is a taxable benefit.  

Employee payments are deducted from daily allowance before tax is withheld at source.  (See the annual amount of deduction.) (in Finnish)

Modified 04.08.2016