Pay 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 pay subsidies.

The subsidy cannot be granted for an employment relationship that started before the decision to grant the subsidy was made. An exception to this is the granting of a new pay subsidy period when the new period begins immediately after the previous one ends.

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. Pay 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 pay 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.

If the person hired with the subsidy is transferred to another employer during the pay subsidy period due to the transfer of a business, merger or division of an entity or the merger of entities, pay subsidy may be granted to the employer receiving the employee for the remaining period of the pay subsidy period granted to the transferring employer. The receiving employer must submit an application for pay subsidy to the employment authority within one month since person hired with pay subsidy has transferred to the employment of the recipient or the receiving organisation.

More information

Information on fees

Service is free of charge.