Wage subsidies and options

Man working outside in a cafe

Does your organization already have experience of using subsidies?

You can get support for employing an international expert, and employment is not the only way to arrange the work.

Both domestic and international subsidies are an option. Alternative ways of carrying out the work include internships and cooperation with other companies. Business Finland also has different types of funding for this purpose. 

Wage subsidies and alternative ways of arranging the work 

Which forms of support would suit your organization? Check out the options below. Consider also whether you could already plan the use of subsidies for the coming years. 

 

For more information, see the International recruitment guide

Subsidies from Business Finland 

 

Business Finland supports the internationalization of companies in many ways: by organizing events, providing training and advice, granting financial support, and helping companies to develop international business networks. The customer base is wide, and the following services are particularly suitable for SMEs and startups. The services of Business Finland are free of charge. 

 

Talent funding is suitable for SMEs and midcaps seeking international growth with an innovative product, service, or business model. The funding helps the company to improve the internationalization skills of its personnel. 

 

With Explorer funding, the company can hire talent or acquire know-how for entering international markets, participate in a foreign trade fair as part of an SME group, or assemble a group of companies to explore joint export opportunities. 

 

Tempo funding is available to startup companies that have been in operation for less than five years. It can be used for working on a new product or service idea and preparations for international growth. 

 

The innovation voucher is intended for planning and surveying a new product, service, or business activity. The voucher can be used for purposes such as the development of a new service or for service design. 

Municipal grants and international EURES grants 

 

Several cities and municipalities provide financial support for purposes such as recruitment-related guidance, orientation, work equipment, work clothing, and workspace costs, for the performance of a one-off job or project, or for salary costs. The subsidies are intended for promoting employment in each municipality, which means that your own city or municipality can offer more detailed information about their terms and conditions. 

 

Through the European Employment Services network EURES, it is also possible to receive support for recruitment from abroad. EURES coordinates Targeted Mobility Scheme projects that provide financial support for both the employer and the job applicant when the job requires the employee to move from one country to another. Learn more about EURES.

Subsidized employment 

 

In subsidized employment, the state partly covers an employee’s salary costs, which makes the costs of the employment relationship more favorable for the employer. Read more on the Job Market Finland website

 

F.E.C. programs 

 

The F.E.C. program (Further educated with companies) is a recruiting training program implemented in cooperation with the local ELY Center and the TE Services. It is formal labor market training program aimed at connecting job applicants and employers through further training. 

 

In the program, international unemployed job applicants often contact companies they find interesting. Indeed, local businesses are the most important partners in the programs. Participation in the F.E.C programs is inexpensive for the employer, and the program is a good way to introduce a highly skilled professional into the work community. Read more on the TE Office’s website

 

Internships 

 

The purpose of an internship is to familiarize the trainee with the job and improve the trainee’s professional skills. On-the-job training of students in universities and universities of applied sciences is called an internship. On-the-job training of an unemployed job applicant is arranged through the TE Office as a work trial. 

 

The employer must ensure that the trainee has the right to work and provide tools and orientation for the job.  

 

Internships are often in high demand. You can search for international university trainees by posting an advertisement for an internship in the learning institution’s own recruitment channels or by actively joining international programs organized by higher education institutions. In addition, you can find trainees in foreign higher education institutions. 

Employee leasing 

 

Employee leasing means an arrangement in which an organization using labor enters into an agreement with another organization to lease an employee in return for remuneration.  

 

In the case of temporary agency workers posted to Finland, the customer must ensure that the sending company has a representative in Finland and provide them with the information they need to fulfill its employer obligations in temporary agency work. 

 

Subcontracting 

 

Subcontracting enables dividing the workload and areas of responsibility between several parties. Many Finnish organizations use international labor through a subcontractor. The main contractor has obligations based on the Aliens and Contractor's Liability Acts, which must be taken into account when subcontracting. In subcontracting chains, it is good to be aware of the principles of ethical recruitment.

 

Project work 

 

International recruitment for project work does not differ much from normal international recruitment. The fixed-term nature of the project work may affect the type of the first residence permit, for example, or the entitlement to Finnish social security when recruiting from outside the EU/EEA. Remember to also check whether the project worker and the family potentially moving with them are entitled to municipal services, such as school, day care, and health care. The employee may be able to participate in short projects even without a separate residence permit. However, the right to work must always be ensured separately, taking into account the situation of each employee. 

Scholarship work 

 

Several public law bodies, foundations, universities, and other entities regularly award grants to support activities such as artistic and scientific work. Whereas the payer of a salary or fee may demand work or results in return for the money paid, grants are gratuitous income. Taxation of grants depends on the payer, amount, and purpose. 

 

Cooperation with other companies 

 

The need for recruitment can also be satisfied through cooperation – sharing resources and expertise. For example, small business owners and startup entrepreneurs may have a lot of know-how in several areas, such as various target countries, international markets, digitalization of services, and innovative further development of products and services.

 

Agree upon the cooperation in writing and confirm which country’s legislation will be followed. The cooperation can be partially financed with Business Finland’s funding elements, for example. More information and contacts with the other companies in your area are available from regional innovation and business centers, startup hubs, and chambers of commerce, for example. 

International recruitment guide

Check out our comprehensive International recruitment guide. The guide offers detailed information, instructions, and links for each step of the recruitment process.