What is a wage subsidy?
A wage subsidy is a discretionary allowance that can be granted to an to support the salary of an unemployed individual. A wage subsidy can be granted for the employment of an unemployed individual who has a lack of professional skills, a reduced capacity for work or who has been long-term unemployed and has reached the age of 60.
Who is paid the wage subsidy?
Wage subsidies can be granted to municipalities, joint municipal authorities, welfare regions, communities, and other employers. An ordinary individual can only be granted wage subsidies for economic activities.
What kind of work is eligible for wage subsidies?
You can get wage subsidies for normal employment or for apprenticeship training. The job can be full-time or part-time. The employment relationship can be indefinite or fixed-term.
Why is wage subsidy paid?
The purpose of a wage subsidy is to support jobseekers in finding employment if they have a lack of professional skills or a disability or an illness that affects their ability to cope with their job. The wage subsidy is granted and paid to the employer. The allowance is compensation for the employer spending more time than usual on guiding the worker.
Conditions for receiving wage subsidies:
The employment contract should not begin before the decision to grant the support has been taken.
The individual to be hired must be registered as an unemployed jobseeker with the TE services. The employer must pay the salary according to the collective agreement and meet their legal obligations, such as taxes. Other legal requirements must also be met.
Amount and duration of wage subsidies?
The amount of the wage subsidy for lack of professional skills is 50% of the wage costs and the duration of the subsidy is 5 or 10 months, depending on the duration of unemployment of the individual to be employed.
The wage subsidy for disability or sickness is 70% of the wage costs and lasts for 10 months. If the conditions are fulfilled, the period may be extended for a further 24 months at a time.
A wage subsidy of 50% of the wage costs for two years at a time is available for hiring a long-term unemployed person aged 60 or over.
If the unemployed jobseeker is employed in an apprenticeship, the wage subsidy can be paid for the entire duration of the training.
Associations, foundations and registered religious communities can, if the conditions are met, receive 100% of the wage subsidy for a maximum period of 10 months.
Employment support for people aged 55 and above:
Aid for the employment of an unemployed jobseeker aged 55 or over is granted without an appropriateness test if the conditions laid down by law are met. The aid is granted if the jobseeker is aged 55 or over and has been unemployed for at least 24 months in the last 28 months, and the person employed with the aid works at least 25 hours a week or at least 65% of the maximum working time in the sector under the employment contract of the beneficiary, and the other conditions for granting the aid are met.
The aid will be paid at 70 % of the eligible wage costs for 10 months, up to a maximum of the duration of the employment relationship.
Employment support for those over 55 years of age
Support for the employment of an unemployed jobseeker who has reached the age of 55 is granted without a suitability assessment if the conditions in the law are met. Support is granted if the individual to be employed has reached the age of 55 and has been unemployed for at least 24 months during the last 28 months. The individual employed with the support works for the recipient according to the employment contract for at least 25 hours a week or at least 65 percent of the maximum working hours in the field. In addition to the other conditions for granting are met.
The subsidy is paid at 70 percent of the eligible wage costs for 10 months, but no more than for the duration of the employment relationship.
Where and when can you apply for wage subsidies?
You can apply for wage subsidy before you start working from the employment office, from the company's and employer's Oma asiointi service. You can apply for wage subsidy at any time, there is no separate application period. Once the wage subsidy has been granted, it is also possible to apply for a municipal supplement.
More information on wage subsidies
BusinessOulu employment services
Tel. 08 558 558 10