Asiakasnäkymä
Pay subsidies (for private clients)
Service implementation:
Life situation and service category:
Service language:
Charges:
Who is the service for?
Pay subsidy is a discretionary subsidy intended to promote the employment of unemployed jobseekers. The employment authority can grant the subsidy to employers for salary costs within the limits of the budget.
Granting a pay subsidy
The purpose of pay-subsidised work is to promote the employment of unemployed jobseekers in the open labour market by improving their professional skills. Pay subsidy may be granted for improving professional competence if the unemployed jobseeker hired for the job:
- is 15–24 years old
- is aged 50 or older
- has not completed the matriculation examination, a qualification as defined in the Act on Vocational Education and Training, or a comparable foreign upper secondary qualification
- is an immigrant for whom an integration plan or multi-sectoral integration plan has been or can be drawn up as defined in the Act on the Promotion of Immigrant Integration
- has not been gainfully employed in the previous six months.
Pay subsidy may also be granted:
- for hiring a person with reduced work ability
- for hiring a long-term unemployed person aged 60 or older
- for an apprenticeship for the entire duration of the training.
New pay subsidies are not currently granted in Vantaa.
Participant’s municipality of residence:
Age:
How can I participate in the service?
The person belongs to one of the five target groups related to improving professional skills. Pay-subsidised work also promotes the chances of finding employment and entering the workforce for those with reduced work ability and the long-term unemployed aged 60 or older.
Pay subsidy requirements related to the employer
Pay subsidy may be granted to wellbeing services counties, joint municipal authorities for wellbeing, the City of Helsinki for its differentiated social and healthcare activities and rescue services activities, as well as other corporations and employers, but not central government agencies or institutions. Municipalities and joint municipal authorities may only be granted a pay subsidy for hiring a person with reduced work ability or a long-term unemployed person aged 60 or older, with the exception of the City of Helsinki with regard to its differentiated social and healthcare activities and rescue services activities. No pay subsidy is granted to the City of Kerava or the municipality of Sipoo. Pay subsidy may be granted to natural persons only for the purpose of economic activity. The employer must have a business ID.
Pay subsidy is not granted if:
- the employer has discharged employees for production-related or economic reasons during the 12 months preceding the employer’s application for pay subsidy and, since then, the employer has not hired employees to the degree that the number of employees employed by the employer at the time of pay subsidy being granted is at least as high as the number of employees employed by the employer at the time of discharge
- the employer has materially neglected its obligation to pay wages, salaries, taxes or statutory fees, unless employment services consider granting pay subsidy to be appropriate for specific reasons related to the person being hired with the pay subsidy
- the employer has previously been granted pay subsidy or employment subsidy for people aged 55 and above to cover the salary costs arising from employing the same person and it has been less than three years since the discontinuation of the subsidy.
Pay subsidy requirements related to the employment relationship
Pay-subsidised work is a normal employment relationship. The employment relationship may not start until the decision on pay subsidy is made.
The employment relationship may be full-time or part-time, open-ended or fixed-term. The salary or wages must be in accordance with the applicable collective agreement or normal and reasonable if no such collective agreement exists. The salary or wages of the person being hired with pay subsidy must not be determined solely based on work performance.
Decisions on the continuation of pay subsidy and the cooling-off rule It is possible to grant pay subsidy again for promoting the employment of the same person without following the three-year cooling-off period if the person is being hired for a new job and the requirements for granting the subsidy are met. However, pay subsidy cannot be granted again to the same employer who was previously granted pay subsidy for the salary costs of the same person until three years have passed since the end of the previous pay subsidy period. This restriction does not apply to the hiring of a person with reduced work ability.
Pay-subsidised work promotes the employment of unemployed jobseekers in the open labour market by improving their professional skills. Pay-subsidised work also promotes the chances of finding employment and entering the workforce for those with reduced work ability and the long-term unemployed aged 60 or older.