As an employer, you can receive considerable financial support for hiring an unemployed job-seeker. Depending on the duration of unemployment, the pay subsidy is 30–50% of the wages (subsidy period 6 or 12 months). 

Wage subsidy is a discretionary support intended to promote the employment of an unemployed job seeker. The purpose of subsidized employment is to facilitate the job seeker's transition to the open labor market. Wage subsidy can be granted under certain conditions for the employment of an unemployed person who has deficiencies in professional skills, or whose permanent or long-term disability or illness reduces their chances of obtaining suitable employment, or who is a long-term unemployed person aged 60 or over.

Starting from July 2023, with the wage subsidy reform coming into effect, an employer who hires an unemployed job seeker can receive financial support as an wage subsidy covering 50 percent of wage costs for a period of 5 or 10 months. For the employment of a person with reduced work capacity, a subsidy of 70 percent can be granted for a period of 10 months. Extensions can be granted for 24 months at a time if the conditions are met. In certain situations, an association, foundation, or registered religious community can receive a wage subsidy covering 100 percent of wage costs.

Additionally, for the employment of persons aged 55 or over, a wage subsidy of 70 percent can be granted. In this case, the wage subsidy is granted without a consideration of appropriateness. The wage subsidy does not cover ancillary wage costs or holiday pay.

Maximum amounts of wage subsidies:

• If 50% subsidy, the amount is 1260 €/month
• If 70% subsidy, the amount is 1770 €/month
• If 100% subsidy, the amount is 2020 €/month

Remember these points:

• Wage subsidy is always discretionary and based on the needs of the job seeker.
• The employer commits to paying a salary in accordance with the collective agreement.
• Wage subsidy is not granted for purely commission-based work.
• The employment relationship must not begin before the wage subsidy decision. If the work has started before the company has received a positive wage subsidy decision, the subsidy cannot be granted.

Instructions for applying for wage subsidy:

• Wage subsidy is applied for electronically through Regional Administration’s e-service portal.
• Login to the service is done using Suomi.fi authentication.
• The online service guides the user during use.