General Housing Allowance in Finland 2026 — Asumistuki, the Household Rule and the 2024–2025 Changes

1. The household rule: your flatmate's income affects you

Housing allowance is calculated per household (ruokakunta), not per person. People living in the same home are as a rule treated as one household, and the allowance is decided on their combined income. This is what most surprises foreign employees sharing a flat: even if your own income is low, a flatmate's income can reduce the allowance or remove it entirely.

To count as separate households, the parts of the home have to be rented under separate tenancy agreements and the parties have to live independently of each other. The exception is read narrowly and Kela looks at the documents. Being co-tenants on the same agreement usually defeats a claim to be separate households. Married couples and cohabiting partners are counted as one household in any case.

2. The allowance does not cover the whole rent

The calculation has three steps. A ceiling is applied to accepted housing costs, and it varies by municipality and household size, because rent levels in Helsinki and in a small municipality are not the same. Rent above the ceiling is not counted at all. Your own share is then determined from the household's income, and a set proportion of what remains is paid as allowance.

This structure means that moving to a more expensive home does not raise the allowance in proportion: where the rent exceeds the ceiling, you pay the whole difference yourself. Kela's own calculator should be used for the current ceilings, income limits and payment rate, because these figures are revised by legislation.

3. What the 2024–2025 reforms changed

Housing allowance was narrowed markedly within two years. The proportion paid was reduced, so the same rent and the same income now produce less allowance than in earlier years. The deduction previously applied to earned income in the calculation was removed, which directly affected low-paid working households that had drawn both a wage and an allowance. In figures: from 1 April 2024 the allowance covers 70% instead of 80% of the gap between accepted housing costs and the household's own share, the own share rose from 42% to 50% of income above the lower limit, the EUR 300 monthly earned-income deduction per household member was abolished, and Helsinki was placed in the same cost group as the rest of the capital region, lowering its maximum accepted costs slightly.

Owner-occupied homes were also taken out of general housing allowance, which now covers rented homes. These changes make it risky to rely on forum posts from earlier years or on what a friend received: a calculation that held a year ago may not hold now. Check your own position with Kela's current calculator before every application.

4. The duty to report changes, and the risk of recovery

Housing allowance is paid on your present circumstances rather than on the past, so changes have to be reported to Kela. Reportable changes include income rising, starting work, a change in the rent, moving, and someone joining or leaving the household. A change of flatmate has to be reported too, because the composition of the household is the basis of the calculation.

An unreported change does not merely stop the allowance: the overpaid amount is recovered, and the claim arrives months later as a lump sum debt. Because Kela can see income records, the discrepancy usually surfaces sooner or later. Giving false information deliberately can also have legal consequences, and the requirement of integrity is assessed in immigration matters as well.

5. Checklist before applying

6. How to apply and what Kela asks for

Apply in OmaKela, or on a paper form if you do not yet have strong electronic identification. Attach the tenancy agreement, a breakdown of costs not included in the rent, such as water, and income details for everyone in the household; Kela also sees wage data in the Incomes Register. If you have just moved to Finland, Kela first decides whether you are covered by Finnish social security, so send the moving notification at the same time.

The allowance is always granted from the 1st of a month and can be paid for at most one month backwards: to get it from January, the application must reach Kela by the end of February. So apply as soon as you move in. Since 1 August 2025 most students receive the housing supplement of student financial aid instead of general housing allowance.