What is pay subsidy?

Pay subsidy is a subsidy intended for promoting an unemployed job-seeker’s employment and the employment office can grant it to the employer to cover the hiring costs. The aim of the pay-subsidized work is to improve the professional skills and promote the employment of an unemployed job-seeker in the open labour market.

Pay subsidy is a chance for the unemployed to get a job for which they do not quite have the sufficient professional competence or if they have an injury or sickness affecting coping at work. Applying for a job, unemployed people should mention the possibility of a pay subsidy for hiring them.

pay subsidy

A pay subsidy can be granted for fixed-term, non-fixed-term, full time and part-time contracts. It  can also be granted for apprenticeship training.

From the employee’s perspective it is a normal employment relationship for which the employer must pay normal wages according to the collective agreement. The provisions of labour legislation and the collective agreement are applied on subsidized jobs similarly as on employment generally. A pay subsidy will not granted if the employment to be subsidized already started before the subsidy was granted.

For more information, visit the employment office website: get-pay-subsidy-card-find-job.