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Payment of wage subsidy and start-up allowance is delayed in the South Häme employment area

22.1.2025 Releases Working and business TE reform Employment Trying

The Employment Area is currently unable to grant wage subsidies. There is a delay in the payment of wage subsidies, start-up grants and expense reimbursements that have already been granted due to payment arrears and system changes.

Wage support, start-up money and their processing processes were transferred from the state to the municipalities on January 1, 2025. At the same time, the payment tasks for these services have been transferred to the South Häme employment region.

Along with the payment tasks, the employment area also received a payment debt for 2024 from the state, which is now causing a delay in processing payments. The payment debt is in wage subsidy, start-up money and expense reimbursement payments. In addition, payments are made more difficult by system changes that were introduced with the TE reform. The South Häme employment area is currently correcting the situation.

The employment area is currently unable to grant wage subsidies.

The TE Office made decisions regarding wage subsidies and start-up grants already in 2024. Some of the decisions concern the year 2025. These decisions directly affect the employment area's appropriations for 2025 and their use. A certain amount of money has been reserved in the budget of the city of Riihimäki for the operations of the South Häme employment area.

When the employment area started its operations, it was informed of the costs, which would be transferred entirely to the employment area. According to the information received in advance, approximately one million euros had been granted in wage subsidies and start-up grants for 2025. In reality, approximately 2025 million euros have been granted in wage subsidies and start-up grants for 1,6. This is almost the same amount that is reserved in the budget of the South Häme employment area for the payment of wage subsidies and start-up grants. The South Häme employment area grants start-up grants within its appropriations, but it is currently unable to grant wage subsidies.

The state may be paying compensation to the employment area regarding appropriations. These will affect the appropriation situation during the spring.

Edited on January 23, 2025 at 13.11:XNUMX PM: Removed incorrect statement that the employment region would not grant start-up funding. Added information that the employment region grants start-up funding within its budget.