When paying adjusted daily allowance, income that you have earned as compensation for work is called adjustable income. The income you have earned generally affects your daily allowance when the income is paid. Income saved to or withdrawn from a working time bank is also considered adjustable income.
Income from part-time entrepreneurship usually affects the amount of your daily allowance based on the income information stated on your latest personal tax decision. If you have been an entrepreneur for only a short period, the income from entrepreneurship will be estimated by some other trustworthy documentation, such as a monthly breakdown of income and expenses.
| An example of how income from entrepreneurship affects the daily allowance |
| The income from entrepreneurship on your latest personal tax decision was 4 000 euros. The amount that will affect your daily allowance monthly is calculated by dividing the total income into the monthly income: 4 000e / 12 months = 333,33 e/month of adjustable income. |
Income from entrepreneurship as an agricultural operator or forestry operator affects your daily allowance the same way as any other income from entrepreneurship would, but in the case of agricultural operators only the earned income portion (not the capital income portion) of the agricultural operations stated on the tax decision is acknowledged. In the case of forestry operators, only the value of the acquisition work is acknowledged. Agricultural operators and forestry operators must attach their tax decision in its entirety to their daily allowance application so the Fund can get the necessary information.
Income from part-time entrepreneurship may affect your daily allowance even after the entrepreneurship has ended (for example compensation for intellectual property such as royalties).
According to the definition of an entrepreneur in the Unemployment Security Act, an entrepreneur is someone who works outside of an employment relationship. For this reason, work through invoicing services and commissions are considered entrepreneurship. Income from entrepreneurship like this affects your daily allowance based on monthly breakdowns of your earnings that you must send to the Fund instead of your tax decision.
What kind of additional information is required regarding your entrepreneurship depends on the nature of your part-time entrepreneurship (for instance a breakdown of your business’s income and taxable expenses during the application period or copies of commission receipts concerning the commissions you have been paid during the month in question). Ask the Fund about the necessary attachments in your situation.
How social benefits affect your daily allowance
It is important to inform the Fund of any social benefits you receive while unemployed, as they may affect your daily allowance
- Some social benefits (such as sickness allowance, (special) pregnancy and parental allowance, and old-age pension) prevent the payment of earnings-related daily allowance completely.
- Some social benefits (such as partial disability pension, part-time pension, child home care allowance, and flexible care allowance) reduce how much earnings-related allowance is paid.
- Some social benefits (such as child benefit, housing allowance, disability allowance, and social assistance) do not affect your earnings-related daily allowance.
If you receive a social benefit that reduces the amount of your earnings-related daily allowance, the social benefit will be subtracted from your allowance in full. The exempt amount used for calculating adjusted daily allowance is not used when calculating the effects of social benefits on earnings-related daily allowance.