Instructions for applying the strike compensation
The strike compensation by the Finnish Union of the University Professors is 200 € per diem. The taxable amount the reimbursement is 184 € per diem. The Finnish Union of the University Professors will withhold the income tax and will do the reporting to the Tax Administration. The strike compensation may be only as large as the gross amount deducted from the pay by the employer.
The applications are asked to be sent in two months after attending the strike. The objective of the union is to make the compensations in six weeks after receiving the applications.
The Finnish Union of the University Professors will deduct the income tax from the strike compensation according to the instructions given by the Tax Administration. The net payment of the total 200 € daily compensation is 108 € after tax. The union will inform the tax amount (92 €) to the Tax Administration.
TAXATION GUIDELINES FOR STRIKE COMPENSATION
Law on Income Tax 88 §
Strike compensation: A daily strike compensation up to 16 euros disbursed by a labor union or equivalent organization is not subject to tax.
The resolution of the Tax Administration regarding withholding and stature of income tax: Chapter 5, 10-11 §
Date of issue: December 12, 2017
Valid from: January 1, 2018 – until further notice
10 § 4th Act: If the payment supplier has not received the needed information to execute the withholding of the income tax, and also the taxable person has not delivered a tax card to the payment supplier, the withhold of the income tax will be conducted according to the following table:
11 §: The withholding tax concerning strike compensation or other equivalent reimbursement paid by the concerned labor union is remitted according to the table given in the 10 § 4th Act.