Pay subsidy for the employer for wage costs
- Service
- 9 municipalities
- Public service
The Päijät-Häme Employment Services 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 skills ...
Do the following
Apply for pay subsidy well in advance of the start of the employment. You can apply the subsidy only with an electronic form. Before making the decision, the Päijät-Häme Employment Services confirms the prerequisites for granting the subsidy, as well as information related to taxes, and request for further information if necessary. The employment 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 must continue immediately after the previous support period ends.
An authorised person can submit the application in the e-services. 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 Suomi.fi 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.
You can get advice on how to apply for for the subsidy from the Päijät-Häme Employment Services employer and business specialists. You can also get guidance from the Enterprise Finland Telephone Service.
How to apply for the subsidy
Apply for the pay subsidy via Job Market Finland. Fill in the application and attach the necessary attachments. The 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 for the payment of the subsidy
Apply for payment of the pay subsidy from the Päijät-Häme Employment Services in Job Market Finland 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.
To whom and on what terms
You can receive a pay subsidy if the organisation you represent is:
- a company,
- municipality, joint municipal authority, wellbeing services county, or
- other community, such as an association, foundation, registered religious community or parish.
Subsidy cannot be granted if the wage is determined solely by work results or for an employment relationship that started before the subsidy decision, except for new periods that start immediately after the previous one. The subsidy is denied if it distorts competition or if you have materially neglected taxes or statutory payments.
Subsidy cannot be granted to an organisation that is considered a company in difficulty under 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 incompatible for the internal market.
Subsidy can be granted despite dismissals or layoffs if the number of employees in employment relationship at the time of applying for the subsidy is at least equal to the number of employees at the time of the dismissal or layoff. The subsidy must not weaken the position of your current employees.
If an employee hired with the subsidy is transferred to another employer during the subsidy period due to a transfer of business, a merger or division of a company, or a consolidation, the subsidy may be granted to the receiving employer for the remaining duration of the pay subsidy period originally granted to the transferring employer. The receiving employer must submit the pay subsidy application to the Päijät-Häme Employment Services within one month of the employee's transfer.
An employee hired with the subsidy may be transferred to another employer (user company) with permission from the Päijät-Häme Employment Services. The application must include a statement from the user company confirming compliance with subsidy conditions. The transfer depends on the user company meeting the subsidy requirements and paying the employee appropriate compensation. During the transfer period, the subsidy amount cannot exceed the maximum amount granted to the user company nor can it be greater than the pay subsidy granted to the previous employer.
Subsidy cannot be paid if you fail to comply with the subsidy decision's terms, the prerequisites are found to be unmet after the subsidy is granted, or if the subsidy has been granted erroneously, excessively or without justification.