Applying for pay subsidy is becoming electronic – read about the reform and employment subsidy for people aged 55 and over


The Government has sent Parliament a proposal on a pay subsidy reform with the aim of promoting the employment of people in a weak labour market position and to increase the use of pay subsidies, especially in companies.

Reform simplifies pay subsidy regulation

The aim is for employers to be better able to anticipate how much support for hiring they can get and under what conditions, and for the granting and payment process to be faster than before.

Employers who hire employees with pay subsidy will be required to have a business ID in the future, and the subsidy cannot be granted to households.

The e-service for receiving electronic support applications will be opened on 19 December 2022, and the use of printed application forms will be discontinued altogether at that time. In the future, applications for pay subsidy will go through the TE Services’ Oma asiointi service in Job Market Finland.

The reform is expected to enter into force with a transition phase on 1 January 2023.

Employment subsidy for people aged 55 and over

In connection with the pay subsidy reform, the Government has also proposed a new employment subsidy to promote the employment of people aged 55 and over. The subsidy would be granted without consideration of appropriateness if the conditions laid down in the Act are met. The same payroll costs would be eligible for employment subsidy as with pay subsidy.

Read more

Transition security expanded as re-employment support for people of at least 55 years of age and pay subsidy reform for recruiting unemployed people over 55

More information

Applying for pay subsidy is becoming electronic (in Finnish) (