Compensation for functional limitation

Compensation for functional limitation is paid in the event of a permanent general functional limitation caused by an occupational accident or disease.

General functional limitation refers to reduced functional capacity caused by an accident or occupational disease: in other words, a functional limitation. At the earliest, permanent functional limitation can be assessed one year after the accident or manifestation of the occupational disease. If the final decision on the disability category cannot be made at that time, compensation for functional limitation is paid in advance, as long as the minimum degree of permanent functional limitation is known.

There are a total of 20 disability categories. The categories are listed in the Government decree on disability categories. Disability categories describe the degree of functional limitation caused by the injury or illness.

No separate compensation is paid for pain and suffering and cosmetic injuries. However, these have been taken into account in the disability categories and are included in the compensation for functional limitation.

The amount of compensation for functional limitations determined as based on the disability category and basic amount specified by law. The amount of compensation depends on the injured employee’s age. The injured person’s earned income or other individual circumstances, such as leisure-time activities, do not affect the amount of compensation.

Compensation for functional limitation is paid as a one-time compensation for disability categories 1–5. For disability categories 6–20, the allowance is paid as a continuous monthly compensation.  

If the functional limitation is later aggravated, additional compensation is paid. Aggravation of the limitation is compensable if the disability category subsequently increases by at least one category. If the disability category of the continuous compensation for functional limitation subsequently decreases by at least one category, the compensation for functional limitation is adjusted to the changed circumstances.

Compensation for functional limitation is a tax-exempt compensation.

Tables for one-time compensation for functional limitation

The Workers’ Compensation Center publishes an annual table listing the amount of one-time compensation for functional limitation for disability categories 1–5. The tables indicate the amount of one-time compensation depending on the year of the accident or disease.

Each table is applied to compensation for functional limitation paid for accidents and diseases that occurred or manifested during that year. The amount of compensation for functional limitation is determined directly from the table according to the injured person’s age at the time of the accident or occupational disease.

The tables of one-time compensation for fuctional limitation will be transferred to our new service for experts, Työtapaturmatieto. 

Examples of one-time compensation for functional limitation

In 2018, a 48-year-old employee suffers an accident at work, as a result of which his left ankle must be amputated. This causes a handicap classified as a category 5 disability. To determine the amount of compensation for functional limitation, the table for one-time compensation for functional limitation in 2018 is used. The table lists the amount of compensation for 48-year-olds for a category 5 disability. The amount of compensation for functional limitation is 17,728.90 euros.  The allowance is adjusted to the level of the year of payment using the earnings-related pension index.  

A 55-year-old employee suffers a severe accident at work in early 2019. As a result of the accident, the employee suffers from moderate functional impairment of the lower extremities, lameness and significantly reduced mobility. Based on the description of the injuries, the disability category is estimated at 8. When the disability category is higher than 5, handicap allowance is paid as a continuous monthly compensation. The annual amount of compensation for functional limitation is a percentage of the basic amount specified by law. In 2019, the basic amount is 12,820 euros and the percentage for disability category 8 is 8.36%. The employee is paid an annual compensation of 1,071.75 euros, or 89.31 per month. The allowance is adjusted to the level of the year of payment using the earnings-related pension index.