Starting January 2025, withholding rate for benefits is determined automatically based on the tax card that comes into force on January 1, 2025. The income ceiling specified in the tax card is calculated for the full year, and the ceiling is valid from the beginning of the year.
The unemployment fund generally receives new withholding information directly from the Tax Administration. You do not have to deliver it separately to the fund. However, please note the following:
- The withholding rate for benefits is always at least 25% with a tax card provided for salary payment purposes. For example, if your tax rate for salary is 15.5%, the rate is automatically raised to 25% for benefits unless you provide a revised tax card to the fund.
- Accrued taxes are reset at the turn of the year, so please check your income ceiling at the start of the year from the Tax Administration’s MyTax service. If necessary, you can then request a revised tax card with a correct income ceiling. Should you exceed your income ceiling, any benefit paid out by the unemployment fund is taxed with the higher additional rate.
How is it possible that the tax rate for benefits can be higher than the tax rate for salary?
Benefits are not subject to the same deductions as salary income. This may result in a higher tax rate. To ensure you are taxed correctly, please review your tax card and request a revised tax card for your benefit when necessary.
How to request a revised tax card for benefits:
- Sign in to the MyTax service on the Tax Administration’s website.
- Request a revised tax card and provide it to the Open Unemployment Fund.
- The fund receives the new tax card information automatically within two business days.
For more information and detailed instructions, please see the Tax Administration’s website: vero.fi/en
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Your unemployment fund provides support and advice to ensure you are taxed correctly.
