Pay subsidy

The purpose of the pay subsidy is to promote a jobseeker’s employment in the open labour market when they lack vocational skills or have a disability or illness that affects their ability to handle certain work tasks.

The pay subsidy is a discretionary benefit that the TE Office and municipality participating in the local government pilot on employment can grant for the salary costs of an unemployed jobseeker who is their client. 

The purpose of the subsidy is to promote a jobseeker’s employment in the open labour market when they lack vocational skills or have a disability or illness that affects their ability to handle certain work tasks. Even if the pay subsidy is granted and paid to the employer, the granting of the subsidy is always based on the service needs of the unemployed jobseeker. 

Pay subsidy is available to 

  • companies, 
  • other organisations, such as associations, foundations, registered religious communities and parishes, 
  • municipalities and joint municipal authorities, 
  • households. 

Pay subsidy may be granted 

  • for indefinite and fixed-term employment relationships and apprenticeships 
  • also for part-time employment if the party granting the subsidy considers it appropriate and it promotes the jobseeker’s opportunities for finding employment. The TE Office/municipality participating in the local government pilot will decide on the duration and amount of the support on a case-by-case basis. 
  • The duration of the support period depends on the duration of the person’s unemployment, the impact of their disability or illness on their work performance, and the employer. 
  • The pay subsidy can account for up to 30%, 40% or 50% of the person’s payroll costs. 
  • The maximum amount of pay subsidy is laid down in the state budget. In 2022, the maximum amount was EUR 1400/month including a percentage of the holiday bonus, the maximum of which is determined by the pay subsidy decision. When a jobseeker has a pay subsidy card, this means that the TE Office/municipality participating in the local government pilot has checked the possibility of granting a pay subsidy if the conditions concerning the employer and the employment relationship are met. 

Read more about the pay subsidy on Job Market Finland. 

Pay subsidy positions at the City of Kuopio 

The City of Kuopio offers fixed-term pay subsidy positions for unemployed jobseekers. The aim is to promote and develop the competence of unemployed jobseekers and to participate in securing the availability of skilled labour. Typical positions include museum assistant, group assistant at a day care centre, and caretaker. Working hours are 85% of full-time work with a KVTES-compliant salary, duration of employment 6–8 months. Pay-subsidised apprenticeships are also possible in sectors that employ well. 

Your work try-out may be related to a field that you are interested in, but you can also participate in the try-out even if you are not sure of your future field. In this case, the work try-out can be organised at e.g. a workshop, where you can try different types of tasks. 

The work try-out does not constitute an employment relationship, and it will not incur any costs for the organiser. During the work try-out, you are entitled to the same unemployment benefits as during your unemployment. If you have agreed on a work try-out in your employment plan or a plan that replaces it, you can receive an increased unemployment benefit. Your eligibility for the increase is decided by the party paying the unemployment benefit, i.e. your unemployment fund or Kela. 

As compensation for the costs incurred by the service, you can receive an expense compensation for the days you participate in the service. If you are not granted the compensation by the party responsible for your unemployment benefit, you may be eligible for a discretionary expense compensation paid by the TE Office or the local government pilot. 

Read more about work try-outs on Job Market Finland. 

Clients of the local government pilot: 

Your personal coach can help you with any questions related to the work try-out. You can contact your personal coach through the contact request form in the TE Services’ Oma asiointi (My e-Services) portal.