Municipal supplement for a community providing employment through a wage subsidy

The municipal supplement is a financial support that BusinessOulu’s employment services use to compensate the employer for part of the salary costs* of an unemployed job seeker in Oulu when the employment starts between 1 January – 31 December 2024.The municipal supplement is granted for the employer’s costs that cannot be covered by the wage subsidy, including incidental salary costs and holiday allowance. The municipal supplement is granted to non-profit-making bodies as aid outside the scope of state aid rules.

The conditions for granting the municipal supplement include

• wage subsidy granted by an employment authority
• an employment relationship of at least 3 months
• working hours of at least 80%, which is calculated from the the working hours dictated in the collective labour agreement. If there is no applicable collective agreement, the condition is that the pay is normal and reasonable for the work in question.
• at least the salary dictated in the collective labour agreement. If there is no applicable collective agreement, the condition is that the pay is normal and reasonable for the work in question.

* Payroll costs refer to the wages paid to the employee before deduction of the insured person’s statutory contributions and taxes and the employer’s statutory social security, occupational pension, accident and unemployment insurance contributions and compulsory group life insurance contributions. The salary costs do not include holiday allowance or similar allowances paid to the person receiving the subsidy. Nor does it include wages for the period during which the employer is entitled to a daily allowance under the Health Insurance Act or a daily allowance or compensation under the Accident Insurance Act for the wage costs of the person receiving the allowance.

The municipal supplement is granted to an employer up to a maximum of €450/month for a maximum of 10 months when

• the wage subsidy granted by the employment authority is 100% up to 65% of the working time.

The municipal supplement is granted to an employer up to a maximum of €500/month for a maximum of 10 months when

• the wage subsidy granted by the employment authority equals 50% of the salary costs.

The municipal supplement is granted to an employer up to a maximum of €550/month for a maximum of 10 months when

• the employee has been paid at least 300 days of labour market subsidy on the basis of unemployment or during a measure to advance employment (Kela, employment authority). A receipt for the accumulation of labour market subsidy days must be attached to the application for the municipal supplement.

The municipal supplement is granted to an employer up to €650/month for 10 months at a time when

• an employee’s disability or illness makes it difficult to find work. Discretion may be exercised with regard to working hours.

The municipal supplement is granted to an employer for a maximum of €750/month for a maximum of 10 months when

• the employee has received at least 1,000 days of labour market support based on unemployment or during a measure to advance employment (Kela, employment authority). A receipt for the accumulation of labour market subsidy days must be attached to the application for the municipal supplement.

The combined benefits (wage subsidy, municipal supplement) may not exceed the total salary costs.

What is the municipal apprenticeship supplement?

An apprenticeship supplement is a financial support that BusinessOulu’s employment services use to compensate the employer for part of the salary costs of an unemployed job seeker in Oulu when the employment relationship starts between 1 January – 31 December 2023. The municipal supplement is granted for an apprenticeship leading to a vocational qualification or partial qualification.

What is the amount of municipal supplement to be granted?

The maximum amount of municipal supplement to be granted is €700/month. If the salary costs are lower than declared, the municipal supplement is pro-rated to the actual salary costs.

The combined amount of wage subsidy, educational contribution paid by the school and municipal supplement may not exceed the total salary costs.

The conditions for granting the municipal apprenticeship supplement include

• wage subsidy granted by an employment authority for apprenticeship
• an employment relationship of at least 3 months
• working hours of at least 80%, which is calculated from the the working hours dictated in the collective labour agreement. If there is no applicable collective agreement, the working hours are calculated from the hours dictated by the Working Hours Act.
• at least the salary dictated in the collective labour agreement. If there is no applicable collective agreement, the condition is that the pay is normal and reasonable for the work in question.
• the studies must progress according to the employee’s personal study plan.

The municipal apprenticeship supplement is granted to the employer for the duration of the apprenticeship, however no more than 3 years.

• Apply for a wage subsidy from the employment authority.
• Apply for the municipal supplement after receiving the decision for the wage subsidy. The application must be submitted within 3 months of the start of the employment relationship**.
• Send the original municipal supplement application to BusinessOulu’s employment service (see address below)

Attachments required for wage-subsidised employment:
copy of the employment authority’s wage subsidy decision and job contract
copies of the wage subsidy payment applications every 3 months

Printout from Kela services of the accumulation of days of labour market subsidy for a subsidy employed person, when you apply for a municipal supplement on the basis of 300 or 1000 days of labour market subsidy

Attachments required for apprenticeship:

• copy of the employment authority’s wage subsidy decision and employment contract
• copies of the wage subsidy payment applications every 3 months
• copy of the apprenticeship contract from the apprenticeship office

** Otherwise, the aid may be granted from the beginning of the month in which the application is received. If an application for a municipal allowance has not been received by the deadline and the employment relationship has ended, the municipal allowance will not be granted retroactively.

Post the filled-in application forms to the address below:

Postal address:
Business Oulu -liikelaitos
Työllisyyspalvelut/Kuntalisä
PL 22
90015 Oulun kaupunki
e-mail: kuntalisa(at)businessoulu.com

We have introduced the Suomi.fi messaging service for notifying and advising on municipal supplement decisions.

Please find the instructions for using the service on the Suomi.fi website. To use Suomi.fi messages, you must be strongly authenticated to use the Suomi.fi online service. The kuntalisa@businessoulu.com e-mail address will continue to be used for general advice on local authority matters, but all messages containing personal data must be sent via Suomi.fi messages.

If the messaging at Suomi.fi is out of use, any messages containing personal data must be sent through the City of Oulu secure mail service.

The municipal supplement is paid in 3-month periods.

You must immediately notify BusinessOulu’s employment services of any interruption in employment or changes to the payment of wages ***.

*** If the employment relationship ends earlier than stated in the employment contract, the subsidy is paid for the days for which the employee has been paid. This is also the case if the employee is on an unpaid leave of absence. If an overpayment has been made, BusinessOulu Employment Services will recollect it.