Applying for a pay subsidy
Applying for a pay subsidy
The TE Office will check the criteria for granting a pay subsidy. A pay subsidy card presented by the jobseeker does not on its own suffice for granting the subsidy, and the employer must also fill out a pay subsidy application
Apply for a pay subsidy in good time before the start of employment in the E-Services for companies and employers. You can also use this service to track the processing stages of your application.
To file an application for receiving payments on line you must sign in to the service.
If you cannot apply electronically, submit an application form to the TE Office in whose jurisdiction the workplace is located, or where the person to be hired lives.
No attachments are required to the application, as the TE Office will check the conditions for granting a pay subsidy and information connected with taxation and, if necessary, will ask for additional information before a decision is made.
There is an exception for associations or foundations conducting business practices, who are required to attach copies of their most recent periodic tax return form, latest decision on business income tax and decision on tax exemption if available.
The employment relationship can start as soon as the pay subsidy has been granted by the TE Office.
- If you are applying for an extension for a pay subsidy, submit an application for an extension before the end of the subsidy period. The employment relationship must continue immediately after the previous pay subsidy period has ended.
- If an employee hired with subsidy is transferred to the employment of another employer in connection with transfer of business or a similar situation, the receiving community must deliver a pay subsidy application to the TE Office within a month of transferring the employee to the service of the recipient of a business transfer or the receiving community.
Instructions for employers during the local government pilots on employment
It should be noted that during the local government pilot on employment, when applying for pay subsidy, a person hired with a pay subsidy may be either a TE Office or a pilot customer in the same area. For example, if you recruit two people with pay subsidy, one could be a TE Office customer and the other a local government pilot on employment customer.
If the recruited person is a customer of the local government pilot on employment, the municipality of residence of the jobseeker grants the employee the pay subsidy instead of the TE Office.
Apply for the pay subsidy for the pay costs of a customer in the local government pilot on employment through E-Services. If you cannot apply for a pay subsidy electronically, send the pay subsidy application (KK320) as a paper version by mail to the municipality of residence of the jobseeker you are recruiting.
Filling in the pay subsidy application
When you fill in a pay subsidy application, you must know whether the recruited person is a customer in the TE Office or in a local government pilot on employment. Based on this information, you apply for a pay subsidy from the TE Office or the municipality of residence of the recruited person. If the person is a customer of a local government pilot on employment, you must indicate in the application what their municipality of residence is.
The easiest way to find this out is to ask the recruited person whose customer they are. If the person has received a pay subsidy card, the correct authority has been entered in the card. In unclear cases, it is advisable to ask the recruited person to find out whose customer they are by e.g. contacting the telephone service for personal customers.
Due to data protection legislation, the telephone service cannot provide the employer with any information about the jobseeker or confirm whether the person is a customer or not.
Applying for the payment
After the pay subsidy period, apply for the payment of a Pay Subsidy from the development and administration centre for ELY Centres and TE Offices (the KEHA Centre). The applying can be done either electronically or in paper.
- Apply for payment within two months after the end of the calendar month when the payment period has concluded.
- Apply for payment according to the payment period set in the pay subsidy decision - for a period of one, two or three months. Adhere to the set payment period throughout the entire subsidy period.
- A month can be defined either as a calendar month (e.g., 1 Jan – 31 Jan 2016) or any other month-long period (e.g., 15 Jan – 14 Feb 2016) if it can be justified, e.g., due to a salary payment period.
- If the support period begins or ends while the calendar month of salary payment period is in progress, the first and last period may be shorter than that specified in the decision.
- Attach a copy of the employment contract to the first payment application or enclose an apprenticeship training agreement to your application if a subsidy has been granted for apprenticeship training.
Electronic payment application
Apply for a pay subsidy electronically using the E-Services for employers. To submit a payment application on line you must sign into the service.
The employment contract or apprenticeship agreement required for the first payment application can be delivered electronically via Oma asiointi (My services).
Additional information concerning electronic applications or a requests for additional information is available in the E-Services, so follow the processing of the application regularly.
If you have applied for a pay subsidy using the printable form, you can apply for payment electronically by arranging the matter with the TE Office where the pay subsidy decision has been made.
Payment application in paper format
If you are unable to submit an electronic application, please submit a payment application with relevant attachments to the KEHA Centre by post.
Pay subsidy cannot be paid if:
- the employer does not comply with the terms of the pay subsidy decision
- it is discovered after granting the subsidy that the prerequisites for the pay subsidy are not fulfilled
- pay subsidy has been granted erroneously, in excessive amounts or without justification.