Employment subsidy for those aged 55 or over
The employment subsidy is a benefit intended to promote the employment of unemployed jobseekers aged 55 or over that an employment authority can grant to an employer to cover pay costs. The purpose of the subsidy is to promote the employment of people aged 55 or over by improving their professional skills or entrepreneurial skills. The subsidy is granted and paid to the employer, but its granting is always based on the unemployed jobseeker’s service need.
The employment subsidy requires that the unemployed jobseeker hired for the employment relationship has reached the age of 55 and has been unemployed for at least 24 months in the 28 months immediately preceding the granting of the subsidy.
An employment subsidy may be granted for a full-time employment contract valid until further notice or a fixed-term full-time employment contract. The person hired with the subsidy must work for the recipient for at least 25 hours a week. If the regular working hours in the sector are less than 37.5 hours per week, the working hours must be at least 65 per cent of the regular working hours in the sector.
The unemployed jobseeker’s employment plan or pay subsidy card includes a mention of the subsidy.
The amount of employment subsidy is 70 per cent of the wage costs. The aid may be granted for a period of 10 months but not longer than the duration of the employment relationship. The maximum amount of employment subsidy paid is €1,770 per month. The pay covered with the subsidy is the pay subject to withholding tax that is paid to the employee on the basis of working hours or the performance of a contract.
The employment subsidy is financial support to help employers cover the wage costs of unemployed jobseekers over the age of 55. The goal of the subsidy is to help people aged 55 or over find work by improving their professional skills or entrepreneurial abilities. The subsidy is given to the employer, but it is based on the service needs of the unemployed jobseeker.
To qualify for the subsidy, the unemployed jobseeker must be over 55 years old and have been unemployed for at least 24 months during the 28 months before the subsidy is granted.
The subsidy can be given for a permanent full-time job or a fixed-term full-time job. The person hired with the subsidy must work at least 25 hours per week. If the regular working hours in the field are less than 37.5 hours per week, the working hours must be at least 65% of the regular working hours for that field.
Information about the subsidy is included in the unemployed jobseeker’s employment plan.
The employment subsidy covers 70% of the wage costs. It can be given for up to 10 months, but no longer than the length of the employment contract. The maximum amount of subsidy paid is 1,770 euros per month. The wage costs covered by the subsidy refer to the salary paid to the employee, which is subject to tax.
Do the following
Apply for support well in advance before the start of employment. The employment relationship can only start after a decision on the subsidy has been made.
The granted subsidy is paid retrospectively so that the pay periods ended during one calendar month are included in the pay period. You can apply for a payment of the subsidy for several payment periods. However, the subsidy is paid by each payment period.
Submit a payment application to the employment authority within three months of the end of the calendar month during which the last payment period of the subsidy period ends. The subsidy period is the period defined in the decision as the duration of the subsidy.
Apply for support and its payment in the e-service
Apply for support and its payment using an electronic form in the e-service. Log into the e-service with your personal banking IDs, a mobile certificate or a certificate card.
Complete the application in the service and attach the required documents. The service’s internal instructions will help you fill in the application. In the e-service, you can submit an application, respond to requests for supplementary information concerning the application, supplement your application and receive decisions concerning your case.
In the e-service, the application can be submitted by an authorised person. Persons without separate authorisation can act on behalf of an organisation if they have an existing mandate for transactions or a right based on register data. The e-service checks the person’s right to use e-services when logging in.
The mandate theme used for the subsidy is called Applying for pay subsidy.
You can get advice on using the E-service and how to authorise from the Enterprise Finland Advisory Service.
"Apply for the subsidy well before the start of the employment contract. The contract can only begin once the subsidy decision has been made.
The subsidy is paid after the fact, covering wage periods that ended within one calendar month. You can apply for the subsidy for multiple payment periods, but it will be paid in separate periods.
Submit the payment request to the labour market authority within three months after the last payment period ends. The subsidy period is the time set for receiving the subsidy.
Apply for the subsidy and its payment through the e-service.
Use the electronic form in the e-service to apply for the subsidy and its payment. Log in with your personal bank credentials, mobile certificate, or certificate card.
Fill out the application and attach the required documents. The service will guide you through the process. In the e-service, you can submit your application, respond to requests for more information, update your application, and receive decisions about your case.
An authorized person can submit the application on your behalf. People with existing authorization or legal rights to handle matters for the organization can act without special authorization. The e-service will check your right to use the service when you log in.
The authorization for this subsidy process is called "Applying for wage subsidy."
To whom and on what terms
A company, municipality, joint municipal authority or wellbeing services county or other entity, such as an association, foundation, registered religious community or parish can apply for employment subsidies.
The subsidy cannot be granted for an employment relationship that started before the decision to grant the subsidy was made.
As an employer, you undertake to pay the employee who has been hired with the subsidy at least the salary specified in the collective agreement applicable to the employment relationship or the normal and reasonable salary if there is no applicable collective agreement. The subsidy shall not be granted if the pay of the person to be hired with the subsidy would be determined solely on the basis of their work performance.
The subsidy cannot be granted if:
- the subsidy distorts competition vis-à-vis others offering the same products or services
- the employer has essentially neglected their obligation to pay wages or obligations to pay taxes or statutory payments
- the organisation you represent is a company in trouble as referred to in the General Block Exemption Regulation of EU State Aid or if the European Commission has issued a negative Recovery Order against it, which declares the subsidy as illegal or unsuitable for the internal market.
It is possible to receive support regardless of dismissals or lay-offs when the number of employees in an employment relationship at the time of applying for the subsidy is at least equal to the number of employees at the time of dismissal or lay-off. The subsidy may not impair the position of your other employees.
The employment subsidy can be applied for by a company, municipality, joint municipal authority, welfare area, or another organization, such as an association, foundation, registered religious community, or church.
The subsidy cannot be granted for an employment contract that started before the decision to grant the subsidy was made.
As an employer, you must commit to paying the employee hired with the subsidy at least the wage specified by the applicable collective agreement or a regular and reasonable wage if there is no applicable collective agreement. The subsidy will not be granted if the wage of the employee hired with the subsidy is based solely on the results of the work.
The subsidy will not be granted if:
- it distorts competition in relation to others offering the same products or services
- the employer has significantly neglected their obligation to pay wages or taxes or statutory payments
- the organization you represent is a company in difficulty according to the EU General Block Exemption Regulation on state aid or is subject to an unpaid recovery order based on a decision by the European Commission, declaring the subsidy incompatible with the rules or the internal market.
It is possible to receive the subsidy despite layoffs or terminations, as long as the number of employees in the employment at the time of applying for the subsidy is at least the same as it was at the time of the layoffs or terminations. The subsidy must not worsen the position of the employees still employed.