Palkkatuki (Wage Subsidy)

Detailed explanation

The wage subsidy compensates the employer for a portion of the hired person's salary costs. It is granted when the jobseeker's employment prospects are reduced due to factors such as long-term unemployment, lack of professional skills, disability, or illness. The subsidy amount and duration vary based on the jobseeker's situation and the type of employment.

Employers — including private companies, municipalities, and associations — can apply for palkkatuki through TE Services. The subsidy is discretionary, meaning TE Services evaluates each case individually. The employer must pay at least the applicable collective agreement wage, and the employment relationship must meet normal labor law requirements.

How it affects expats

• •Benefit for jobseekers: If you have been unemployed for an extended period or lack Finnish work experience, palkkatuki can make you a more attractive candidate for employers

• •Employer incentive: Understanding this benefit helps you suggest it to potential employers

• •some may not be aware of the subsidy

• •TE registration required: You must be registered as a jobseeker with TE Services to be eligible

• •Real employment: Palkkatuki positions are real jobs with proper contracts and labor protections

• •Pathway to permanent work: Many palkkatuki positions lead to continued employment after the subsidy period ends

Key details

• •Amount: 50% of salary costs, or higher in certain cases (e.g., long-term unemployed)

• •Duration: Typically 5–10 months, up to 24 months in some situations

• •Application: Employer applies through TE-palvelut

• •the jobseeker needs a palkkatuki decision from TE Services first

• •Conditions: Proper employment contract, collective agreement wages, and normal working conditions required

• •Sectors: Available across all sectors

• •private, public, and non-profit

Related terms

• •TE Services — employment and economic development services

• •Starttiraha (Startup Grant) — grant for new entrepreneurs

• •Työmarkkinatuki (Labor Market Subsidy) — unemployment support