A pay subsidy is an economic benefit that a TE Office may grant an employer to cover pay costs of an unemployed jobseeker. 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.
The granting of pay subsidy is subject to an estimation made by the Employment and Economic Development Office (TE Office) that the jobseeker’s unemployment is caused by the lack of professional competence, and work supported by pay subsidy will enhance the jobseeker’s professional competence and opportunities to find work in the open labour market. If the person to be hired with pay subsidy is aged 60 or over, the granting of pay subsidy primarily requires that the person has been unemployed for an uninterrupted period of 12 months immediately preceding the granting of pay subsidy.
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 service.
The pay subsidy is a discretionary form of support that a TE Office can grant within the framework of available funding.
A municipality that is part of the local government pilot on employment may grant a pay subsidy for the salary costs of an unemployed jobseeker for its customers instead of the TE Office. Pay subsidy is applied for through E-Services.