Duration

The TE Office decides on the duration and amount of the subsidy on a case-by-case basis. The length of the subsidy period depends on the duration of the individual's unemployment, the impact of the disability or illness on work performance, and on the employer.

If the recruited person is a customer of the local government pilot on employment, the municipality of residence of the jobseeker makes a decision on the granting of pay subsidy, its duration and amount in accordance with the legislation. 

The pay subsidy can be up to 30%, 40%, or 50% of pay costs.

The maximum pay subsidy is set in the state budget. In 2021 the maximum is € 1400 a month, in addition to which a percentage of holiday pay up to the level of the pay subsidy decision. If a pay subsidy is granted due to shortcomings in the professional skills of the jobseeker, the amount and duration of the subsidy are determined by the length of the unemployment period of person hired for the job. The longer a person has been unemployed before receiving the pay subsidy, the higher the amount  and longer the duration of the subsidy.

The pay subsidy for an employer enterprise is granted either as a subsidy defined by the General Block Exemption Regulations of EU State Aid or as a de minimis subsidy. If the employer receives a further monetary compensation in addition to the pay subsidy or gets training compensation for the course of an apprenticeship training, the total amount of compensations may not exceed the amount of payroll costs.

When you are considering hiring a jobseeker, you can anticipate the amount and duration of the pay subsidy according to the length of the jobseeker's unemployment:

Unemployment of less than a year

- the subsidy covers a maximum of 30% of payroll costs
- the subsidy period may not exceed 6 months

Unemployment  of at least one year (12 months within a 14-month period)

- the subsidy covers a maximum of 40 % of payroll costs
- the subsidy period may not exceed 12 months

Unemployment of at least 2 years (24 months within a 28-month period)

- the subsidy covers a maximum of 50% of the payroll costs
- the subsidy period may not exceed 12 months


If the pay subsidy has been granted on the grounds that a disability or an illness of the jobseeker significantly and permanently effects the jobseeker's work performance in the job you offer, the subsidy may cover up to 50% of the payroll costs. The subsidy period may not exceed 24 months at a time.

If the pay subsidy is granted to a person who is 60 years or older and has been unemployed for a minimum of 12 months immediately before the granting of the pay subsidy, the subsidy period may not exceed 24 months at a time.  Based on the length of unemployment, the amount of the subsidy is a maximum of 40 or 50% of payroll costs for the initial 12-month-period  and, subsequently, a maximum of 30% of the payroll costs.

Pay subsidy for apprenticeship training

A pay subsidy may be granted for the entire duration of apprenticeship training. If the amount of subsidy is based on the length of unemployment, it covers a maximum of 30%, 40% or 50% of the payroll costs for a period not exceeding 12 months.  The subsidy for the rest of the course of the training is a maximum of 30% of payroll costs.

If the subsidy is granted based on a disability or an illness of the jobseeker, it will cover 50% of payroll costs throughout the entire training period.

Associations, foundations and registered religious communities

When an association or a foundation that does not pursue business practices hires a person who has been unemployed for a minimum of two years, the subsidy period may not exceed 12 months.

The pay subsidy is 100% for work time of up to 65%. The maximum amount of compensation is EUR 1,800 per month. The Evangelical Lutheran Church of Finland and the Eastern Orthodox Church of Finland and their parishes are not associations, foundations or registered religious communities and, therefore, they cannot be granted a 100% pay subsidy.

Social enterprises

Social enterprises may be granted a pay subsidy differently from other businesses in the following situations:

  1. The jobseeker has an illness or a disability significantly and permanently hindering the jobseeker's ability to cope with work
    - the amount of subsidy is a maximum of 50% of payroll costs for a maximum of 36 months at a time
  2. The person has been an unemployed jobseeker for the consecutive period of 12 months or a corresponding situation
    - the amount of subsidy is a maximum of 50% of payroll costs, however, it may not exceed EUR 1,300/month or 40% of payroll costs without a maximum amount (advantage comparison) for a period not exceeding 12 months.
  3. The person has been granted 500 days of unemployment benefit on the basis of unemployment
    - the subsidy covers a maximum of 50% of the payroll costs for a period not exceeding 24 months

Work organised by municipalities due to an obligation

When a municipality hires a person for whom they are obligated to offer work, the subsidy covers a maximum of 50% of payroll costs for a period not exceeding six months.