Grant or scholarship amount and your annual earnings
Annual earnings for the MYEL insurance are calculated and confirmed on the basis of the information provided by the applicant in the insurance application and by the grant/scholarship notification that is in compliance with Section 141b of the Farmers’ Pensions Act (MYEL). This income amount will be used to determine your pension and any compensation and daily allowances.
The amount of annual earnings is also used to determine many other benefits, such as the daily allowance related to traffic insurance and those provided by Kela. Your insurance premiums are also calculated on the basis of your annual earnings.
Calculation of your annual earnings
The amount of your annual earnings is calculated from the total amount of grant/scholarship funds awarded as follows:
(gross amount of the grant or scholarship - expenses) x 360 / number of days in the working period
Once the MYEL insurance policy has been confirmed, the annual earnings upon which it is based are recorded in the employment register. This register serves as the basis for all personal social security benefits (e.g. parental benefits, sickness compensations, unemployment benefits) for the insured.
As is the case with any earnings subject to Finnish pension legislation, an index adjustment is also made to the MYEL earnings at the end of each year. The income stated in the insurance decision will always be expressed at the level valid for the year in which the decision is issued.