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Responsible for the service TE Office

Pay subsidy for the wage costs of an employee

  • Service
  • Nationwide except the Åland Islands
  • Public service

TE Offices and local government pilots may grant organisations discretionary pay subsidy to cover the costs of hiring unemployed job seekers and the time spent for guiding the new employee. Salary costs covered by pay subsidy refer to salary which is subject to withholding tax and paid to an employee based on working hours or completion of a contract.

The pay subsidy improves the professional ski ...

Do the following

Apply for pay subsidy well in advance of the start of the employment relationship. You can apply the subsidy only with an electronic form. Before making the decision, the TE Office or local government pilot confirms the prerequisites for granting the subsidy, as well as information related to taxes, and request for further information if necessary. The employment relationship can only start once the pay subsidy has been granted.

If you apply for continuation to the pay subsidy, submit your application before the end of the support period. The employment relationship must continue immediately after the previous support period ends.

In the e-services, the application can be submitted by an authorised person. Persons without separate authorisation can act on behalf of an organisation if they have an existing mandate for transactions or a right based on register data. The mandate theme is called Applying for pay subsidy. Authorised persons act on behalf of their organisation through e-Identification. The service verifies the person's right to use the service when logging in. In addition to authorizations organisations need their business ID to use the e-services.

How to apply for the subsidy

Apply for the pay subsidy via E-services of TE Services. Log in to the e-services using your personal banking ID, mobile certificate or certificate card.

Fill in the application and attach the necessary attachments to it through the e-services’ service menu. The e-services’ built-in instructions will help with filling in the application. Notifications received from the service provide information on the different stages of your transaction. By using e-services, you can submit an application, respond to requests for supplementary information concerning the application, supplement your application and receive decisions concerning your transaction.

How to apply payment of the subsidy

Apply for payment of the pay subsidy from the KEHA Centre in the e-services in accordance with the subsidy decision. Please note that decisions given before 1.7.2023 are subject to different guidelines.

Apply for payment of the subsidy on a monthly basis for the wage payment periods ending during the calendar month. Apply for the payment of the subsidy three months after the end of the subsidy period before it expires. The application does not expire during the subsidy period.

You will receive a notification of the payment of pay subsidy to the e-service.

Information on all service channels is not available in your chosen language. Change the language of the site to receive information on service channels in other languages.

To whom and on what terms

You can receive a pay subsidy if the organisation you represent is

  • a company,
  • a municipality, joint municipal authority, wellbeing services county, or
  • other community, such as an association, foundation, registered religious community or parish.

Pay subsidy cannot be granted if the salary of the person employed with the subsidy is based solely on the result of the work, for example if the salary is merely a sales commission without a base salary. Nor can the subsidy be granted for an employment relationship that has started before the decision to grant the subsidy was made. An exception to this is the granting of a new pay subsidy period when the new period begins immediately after the previous one ends.

Pay subsidy is not granted for hiring an employee’s job alternation leave substitute.

The subsidy will not be granted to you if it would distort competition with others who provide the same products or services or if you have materially neglected your obligations to pay taxes or statutory payments.

It is not possible to receive pay subsidies if the organisation you represent is a company in trouble as referred to in the General Block Exemption Regulation of EU State Aid or if the European Commission has issued a negative Recovery Order against it, which declares the subsidy as illegal or unsuitable for the internal market.

Subsidy may be granted despite dismissals or lay-offs if the number of employees in employment relationship at the time of the application is at least equal to the number of employees at the time of the dismissal or lay-off. The subsidy must not weaken the position of the employees you employ.

Where, as a result of a transfer of a business, a merger or division of a company, or a merger or a merger between the entities, the subsidy is transferred to another employer during a pay subsidy period, the subsidy to the employer receiving the worker may be granted for the remaining period of the pay subsidy period granted to the transferring employer. The receiving employer must submit the pay subsidy application to the TE Office or to the local government pilot within one month of the transfer to the transferee or the receiving entity.

Pay subsidy cannot be paid to you if

  • you do not comply with the terms of the subsidy decision,
  • it is discovered after granting the subsidy that the prerequisites for the pay subsidy are not fulfilled, or
  • subsidy has been granted erroneously, in excessive amounts or without justification.

The service is provided by

TE Office

Other responsible organisations

Pohjanmaa TE Office, Satakunta TE Office, Kainuu TE Office, Pirkanmaa TE Office, Etelä-Savo TE Office, Pohjois-Karjala TE Office, Lapland TE Office, Etelä-Pohjanmaa TE Office, Pohjois-Pohjanmaa TE Office, Uusimaa TE Office, KEHA Centre, Kaakkois-Suomi TE Office, Keski-Suomi TE Office, Varsinais-Suomi TE Office, Häme TE Office, Pohjois-Savo TE Office

Responsible for the service

TE Office
Text edited by: TE Office
Updated: 20/3/2024