Taxation of earnings-related allowance
Unemployment allowances are taxable income. The withholding of tax is carried out according to your tax card. If a tax card for wages is used, we are required to increase the withholding tax rate for the payment of earnings-related allowance and mobility allowance so that the tax withheld is at least 25 %.
To avoid an increased withholding rate, we recommend that you request a revised tax card for benefits from the Tax Authority. Please visit the Tax authority’s website to obtain a revised tax card for benefits.