Municipal supplement for enterprise employing with wage subsidy

  • The municipal supplement is a financial support that BusinessOulu’s employment services use to compensate the employer for part of the salary costs* of an unemployed job seeker in Oulu when the employment starts between 1 January – 31 December 2024. The municipal supplement is granted for the employer’s costs that cannot be covered by the wage subsidy, including incidental salary costs and holiday allowance. The municipal supplement is granted to non-profit-making bodies as aid outside the scope of state aid rules.

  • The grounds for granting the municipal supplement include

    • wage subsidy granted by an employment authority
    • working hours of at least 80%, and
    • the employee is to be paid at least the salary dictated in the collective labour agreement for the employment in question. If there is no applicable collective agreement, the condition is that the pay is normal and reasonable for the work in question.
Grounds for grantingMax. amount of subsidyMax. duration of subsidy
wage subsidy 50%€500 / month10 months
wage subsidy, disability or illness€500 / month10 months
wage subsidy for apprenticeship€700 / month36 months
employment subsidy for +55-year-olds€550 / month10 months

The combined share of public subsidies (state wage subsidy and municipal supplement from the City) may not exceed 50% of the wage costs. If the person to be employed has a disability or illness that makes it difficult to find work, the subsidies may amount to up to 75% of the wage costs.

In the case of an apprenticeship, the public subsidies (state wage subsidy, municipal supplement and training allowance paid by the educational establishment) cannot exceed the wage costs.

  • What is the municipal apprenticeship supplement?

    The municipal supplement is a financial subsidy that BusinessOulu’s employment services use to compensate the employer for part of the salary costs of an unemployed job seeker in Oulu when the employment relationship starts between 1 January – 31 December 2024. The municipal supplement is granted for an apprenticeship with the aim of obtaining a basic vocational qualification.

    Grounds for granting the municipal apprenticeship supplement

    • wage subsidy granted for apprenticeship training by an employment authority
    • a minimum of 85% working hours, which is calculated from the the working hours dictated in the collective labour agreement. If there is no applicable collective agreement, the working hours are calculated from the hours dictated by the Working Hours Act.
    • the employee is to be paid at least the salary dictated in the collective labour agreement for the employment in question. If there is no applicable collective agreement, the condition is that the pay is normal and reasonable for the work in question.
    • the studies must progress according to the employee’s personal study plan.

    The municipal apprenticeship supplement is granted to the employer for the duration of the apprenticeship, however no more than 3 years.

    1. Apply for a wage subsidy from the employment services.
    2. Apply for a municipal supplement after you have received a decision on wage subsidy. The application must be submitted within three (3) months of the start of employment. Otherwise, the subsidy may be granted from the beginning of the month in which the application is submitted. If the application for the municipal supplement is not received by the deadline and the employment relationship ends, the municipal supplement will not be granted retroactively.
    3. Please send the original municipal supplement application and its attachments to BusinessOulu Employment Services (address below)

    Attachments required for wage-subsidised employment:

    • copy of the employment authority’s wage subsidy decision and employment contract

    Attachments required for apprenticeship training:

    • copy of the employment authority’s wage subsidy decision and employment contract
    • copy of the training contract from the apprenticeship office
    • The apprenticeship training provider pays the employer an allowance for providing on-the-job training (training allowance) based on the estimated cost of the training to the employer.
    • The company is responsible for the employer’s obligations regarding the payroll (e.g. monitoring of absences, insurance must be agreed in writing with the company).

    The payroll costs do not include

    • holiday allowance or a corresponding compensation paid to a person employed with the subsidy
    • wages for the period during which the employer is entitled to a daily allowance under the Health Insurance Act or a daily allowance or compensation under the Accident Insurance Act for the wage costs of the person employed with the subsidy
    • the part of the salary which is determined on the basis of the result of the work of the person employed with the subsidy or on the basis of the employer’s turnover.

    The municipal supplement is paid for the duration of the employment relationship, within the limits of the annual appropriations. The BusinessOulu Employment Services must be informed immediately of any interruption in employment or changes in the payment of wages. If the employment relationship ends earlier than stated in the employment contract, the subsidy is paid for the days for which the employee has been paid. This also applies if the employee has an unpaid break in employment. If the conditions for the payment of the municipal supplement are not met, BusinessOulu Employment Services will recollect the unduly paid aid.

  • Post the filled-in applications to the address below:

    Postal address:
    Business Oulu -liikelaitos
    Työllisyyspalvelut / Kuntalisä
    PL 22
    90015 Oulun kaupunki
    e-mail: kuntalisa@businessoulu.com

    We have introduced the Suomi.fi messaging service for notifying and advising on municipal supplement decisions.

    Please find the instructions for using the service on the Suomi.fi website. To use Suomi.fi messages, you must be strongly authenticated to use the Suomi.fi online service. The kuntalisa@businessoulu.com e-mail address will continue to be used for general advice on local authority matters, but all messages containing personal data must be sent via Suomi.fi messages.

    If the messaging at Suomi.fi is out of use, any messages containing personal data must be sent through the City of Oulu secure mail service.

    The municipal supplement must be used to cover the employee’s wage costs and statutory employer’s expenses.

  • The employer must regularly submit the pay slips of the hired employee to BusinessOulu’s Employment Services. The subsidy is paid retroactively according to the actual wage costs in periods of 2-3-months.

Exemplary calculations on the amount of the municipal supplement to be granted

The wage costs eligible for the municipal supplement are the wage subject to withholding tax under the wage subsidy legislation, increased by a factor of 1.23 to take account of the employer’s incidental expenses.

Example 1, wage-subsidised employment.
Working hours 100% and wage subsidy 50%.

Salary costsWage subsidyMunicipal supplementSubsidies in total
295212002761476

Example 2, wage-subsidised employment.
Wage subsidy 70% of salary costs, granted on the grounds of disability or illness.

Salary costsWage subsidyMunicipal supplementSubsidies in total
258314704671937

Example 3, apprenticeship.
Working hours 100%, wage subsidy 50% of the salary costs and training allowance €70/month.

Salary costsWage subsidyTraining allowanceMunicipal supplementSubsidies in total
27061100707001870

Contact us in matters concerning the municipal supplement

Camilla Karvinen

In-House Service Specialist