Palkkatulojen

Palkkatulot are income derived from employment, including base wages, salaries, bonuses, overtime pay, commissions, and other forms of remuneration provided by an employer. They represent the main component of earned income for many workers and are distinguished from capital income such as interest and dividends, as well as from income earned through self-employment.

In taxation terms, palkkatulot are taxed as earned income with a progressive rate schedule. Employers typically apply an ennakkoperintä, a withholding tax, to gross earnings according to the employee’s tax card and remit the taxes to the tax authorities. The withheld amount also covers the employee’s social security contributions, including pension insurance and health and unemployment contributions. The tax calculation may adjust through the annual tax settlement if the withholdings are not sufficient or overpay.

Fringe benefits and benefits-in-kind offered by an employer can be treated as part of palkkatulot for tax purposes, and certain allowances or reimbursements may affect the tax base. Palkkatulot are reported in the annual tax return and contribute to the calculation of social security entitlements, such as pension accrual, as well as eligibility for certain social benefits and public services.

The concept of palkkatulot is central to personal income assessment in many economies, serving as the primary basis for tax revenue and for determining the level of public service funding. It is commonly contrasted with capital income and with income from self-employment.