Pay subsidy reform will enter into force in July


The amended legislation aims to simplify the pay subsidy system and increase its use by companies. The act will enter into force on 1 July 2023.

By increasing the use of pay subsidies in companies, the reform aims to make the subsidy a more impactful instrument in promoting employment and raise the employment rate.

In future, the use of pay subsidy will mostly be reserved to promote the employment of those with reduced working capacity or to unemployed jobseekers who are otherwise disadvantaged.   

“The pay subsidy reform offers more opportunities for both employers and jobseekers. A simplified application process and quicker payment will make the use of pay subsidy easier. The pay subsidy reform is one of the many ways the Government promotes employment,” Minister of Employment Tuula Haatainen said.

A new employment subsidy for those aged 55 or over

As part of reform, a new employment subsidy for those aged 55 or over will be introduced. The subsidy will be granted without consideration of expediency, as long as the conditions laid down in the act are met. It will be paid for up to 70 per cent of the eligible labour costs for a maximum period of 10 months. 

More information