Pay subsidies
A pay subsidy is a benefit intended to promote the employment of unemployed jobseekers that an employment authority can grant to an employer to cover pay costs. The purpose of work supported by pay subsidy is to promote the employment of unemployed job seekers in the open labour market and to improve their professional competence. Pay subsidy also helps people with reduced work ability and those aged 60 or over who have been unemployed for an extended period to find work and participate in the world of work. The subsidy is granted and paid to the employer, but its granting is always based on the unemployed jobseeker's service need. A pay subsidy may be granted for - open-ended full-time employment - fixed-term full-time employment - apprenticeship training - part-time employment if the granter of the subsidy feels that it is appropriate and that it promotes the jobseeker's possibilities to find employment. The employment authority assesses whether the subsidy is the most appropriate means of promoting the employment of the unemployed jobseeker and decides separately the duration and amount of each support period. The unemployed jobseeker's employment plan or pay subsidy card includes a mention of the pay subsidy. The length of the pay subsidy period depends on the duration of the person's unemployment and the impact a possibly reduced work ability might have on their work performance. Depending on the duration of the unemployment preceding the pay subsidy, the subsidy would be granted for five or ten months. The subsidy is granted for the duration of the employment relationship at most. The subsidy may be granted for hiring a long-term unemployed person aged 60 or over for a maximum of 24 months at a time. In most cases, the amount of the pay subsidy is 50% of the salary costs incurred by the person hired with the subsidy. The amount of support granted for hiring a person with reduced work ability is 70% of their pay. The amount of support for an association, foundation or registered religious community may be 100% of the pay. The amount of subsidy granted is between 1,260 and 2,020 euros per month, depending on the grounds for granting. 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.