Pay subsidy reform postponed – the effects also apply to the future employment subsidy for people aged 55 years or over

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The reform was supposed to enter into force in a transitional phase on January 1, 2023. However, the schedule has changed due to the parliament's processing schedule and the reform's entry into force has been postponed. The government's goal is to bring the reform into force during the spring of 2023.

The goal of the future reform is to promote the employment of those in a vulnerable labour market position and to increase the use of pay subsidies especially in companies. In connection with the reform, a new employment subsidy has also been presented, which will promote the employment of people over 55 years of age.

Applying for pay subsidy and the payment prosedures will remain unchanged until the reform

A pay subsidy must be applied for well before the start of the employment relationship through the E-services of TE Services located at Job Market Finland. The subsidy applicant logs into the service with a personal bank ID, mobile certificate, or certificate card. In accordance with the decision, payment of the subsidy is also applied for in the E-services. Persons acting on behalf of the company need authorization. You can monitor the processing of applications by transacting electronically.

If necessary, you can also apply for a pay subsidy and its payment using a printable form, if the use of the electronic transaction service is not possible. The KEHA Centre uses the national income register to provide pay subsidies. The processing of the subsidy payment can be speeded up by reporting additional information to the income register, which is necessary as a basis for the payment of the subsidy. The current instructions and transaction channels for applying for a pay subsidy and its payment are given in the Suomi.fi service.

If you have questions about pay subsidy payments, you can contact KEHA Centre's payment unit: palkkatuki.keha@ely-keskus.fi.

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