Pay subsidy

The purpose of work supported by pay subsidy is to enhance the professional competence of prospective employees to be hired with pay subsidy, and to help them find work in the open labour market.

  • An unemployed jobseeker may be granted a pay subsidy if the TE Office estimates that the unemployment is due to shortcomings in professional competence and that the subsidised work will improve the jobseeker’s professional competence and opportunities to find employment in the open labour market.
  • An unemployed jobseeker who is 60 years old or older may be granted a pay subsidy if they have been unemployed for at least 12 consecutive months just before the pay subsidy was granted.
  • An unemployed jobseeker may be granted a pay subsidy if the TE Office has assessed that the person's disability or illness has an essential, permanent or continuous effect on their work in the position offered.

Although a pay subsidy is granted and paid to the employer, the granting of the subsidy is always based on the unemployed jobseeker's need for the pay subsidy.

A pay subsidy may be granted

  • for an employment relationship valid until further notice or a fixed-term employment relationship
  • for an employment relationship or apprenticeship training
  • for full-time employment or part-time employment, if the TE Office considers it appropriate and it promotes the jobseeker's possibilities of finding employment. This may be justified e.g. for finding employment for people with partial work ability.

The pay subsidy is no longer granted for hiring a substitute worker during a job alternation leave.

You will be paid according to the applicable collective agreement or, if no applicable collective agreement exists, a prevalent and reasonable wage for the job in question The TE Office supports the employer in hiring costs.

How to use the pay subsidy

Work supported by pay subsidy may be joined with other TE services.

  • The labour force training may be followed by a pay subsidy
  • The subsidised work period may include labour market training
  • Pay subsidy can be granted after the work trial
  • The TE Office may provide the services of a job coach to support the jobseeker.

Joining the services appropriately supports the jobseeker’s access to the labour market and helps the employer to find a suitable employee.

Instructions for customers in local government pilots on employment 

If you are a customer of a local government pilot on employment, your municipality of residence assesses whether you can be granted a pay subsidy on the basis of the above-mentioned criteria.  

Jobseekers’ services during the local government pilots