There’s an interesting gap for investors in unemployment benefits. The first 400 days of benefits are received normally
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Is that calculated on a monthly or annual basis? Because a solid 3,700 in dividends per year would mean that for most people, the stock portfolio would be over 100,000.
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The limit is €311/month. When capital income changes during a month, you must file a notification and have the labor market subsidy recalculated. Dividend income is concentrated in April.
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Does this also apply to dividends paid into an Equity Savings Account (OST)? After all, they are not recognized as income until the account is closed, and even then only if the OST is in profit.
It only applies to capital income. If it’s not recognized as income, it’s not recognized. You can even take shares against debt.
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I wonder if they are considered income if they aren’t withdrawn from the equity/book-entry account? According to my understanding, they aren’t income if they aren’t transferred or withdrawn to a checking account.
All capital income is counted. Changes occurring within an equity savings account are not considered income. On a book-entry account, they are.
So, once you go over that amount, does it mess things up for the entire year or just for a single unemployment benefit month?
For the month when you go over. I don’t have certain information on whether they somehow distribute larger sums across future months.
It seems to be explained quite well there
- So the annual capital income is averaged over each month
- Dividends from an equity savings account are also taken into account
- For some incomprehensible reason, the limit for a single person is just over 300, but if you have a spouse, you can receive over a thousand in dividends without it affecting the labor market subsidy
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It would certainly be interesting to hear the benefit engineer’s reasoning for that €300 → €1000 increase.
A (hidden) subsidy for the relationship, or perhaps not so hidden?
Usually, expenses per person drop when you move in with someone, and benefits do the same, but in this case, some working group has somehow managed to come up with different calculations 
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I must admit, I’m probably not the best expert on the subject. I assumed Kela followed its own guidelines. It’s wild stuff if you don’t know the Rules in advance.
Over the years, while moving between temporary work, unemployment, being an investor, or a student—and with my relationship status fluctuating—Kela (Social Insurance Institution) benefits have certainly provided surprises one way or another. When you factor housing allowance into the mix, there have been times I’ve questioned whether investing even makes sense.
But ultimately, investing has played a part in reducing the need for support, and now that I’m working, I haven’t had to wrestle with Kela.
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“Labor market subsidy is the most common form of unemployment benefit in Finland. In 2014, 268,300 people received it”.
Isn’t it so that after a certain age capital income doesn’t affect the labor market subsidy, maybe 55?
Edit. That’s correct
However, your own capital income does not affect the labor market subsidy
- if you have turned 55 and have met the work requirement before becoming unemployed
- if you participate in activities agreed upon with the TE Office.
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Dividends and unemployment didn’t work together at all, at least back in the day. Even though I think that €300/month limit already existed back then.
I had just paid out €4,800 in dividends (from a side business, not actual work, an investment firm) when, surprise surprise, I became unemployed. For the next two years, Kela then conscientiously deducted €400/month from the benefit. It couldn’t be cleared even at the turn of the year or after 12 months; it seemed to go by calendar years.
So you should at least be careful regarding your own company. I had checked that a limited company (oy) was the best option for a side business, but who interprets the rules and how isn’t necessarily the same as how you read and interpret them yourself..
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My daughter moved out on her own at the beginning of March and we applied for housing allowance for her. I should have done some maneuvering with her stocks, but I don’t dare to sell now as it affects the allowance immediately and I can’t be bothered to report every move. I guess they’re counted as income whether you sell stocks at a profit or a loss. I interpreted that there was a certain limit for those dividends before they affect the benefits and that occasional income isn’t taken into account; it’s quite a lot of fiddling with these if you intend to be honest.
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This reminded me of a peculiar nuance when looking into the matter; Kela does not grant labour market subsidy if capital gains exceed a certain level. They don’t look at capital income, but rather capital gains. Thus, it can be that capital income is, for example, 0€. Quite peculiar. Apparently, without being familiar with the terminology, they think that all words containing ”voitto” (profit/gain) mean income. Then again, it’s good that such things exist; it prevents people from gaming the system this way too.
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Do they consider “trading” as work where the resulting “earned income” affects the labor market subsidy, but “holding” is seen as being idle, i.e., genuine unemployment?
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What exactly do you mean? Only capital income is mentioned here: https://www.kela.fi/tyomarkkinatuessa-on-tarveharkinta
According to those instructions, it does apply.
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