Helsinki will reform the forms of support available for hiring unemployed Helsinki residents. From the beginning of 2026, the Helsinki benefit will be granted as an independent benefit and cannot be combined with the pay subsidy in the context of the same employment relationship.
The Helsinki benefit is financial support for a private or third-sector employer that hires an unemployed jobseeker from Helsinki.
The pay subsidy will continue to be provided by Helsinki as a form of support for employers. Employers can choose whether to apply for the Helsinki benefit or the pay subsidy. For this reason, the maximum amount of the Helsinki benefit will be increased to €1,500 per month.
“The separate granting of the Helsinki benefit and the clarification of the conditions from the beginning of 2026 will facilitate the process. Employers will have quicker access to the support and a better understanding of the overall costs," says Senior Specialist Neea Salonen from Helsinki Employment Services.
Until the end of this year, financial support for hiring an unemployed jobseeker can still be combined so that the Helsinki benefit can be added to the pay subsidy or the employment subsidy for persons over 55 years of age. However, the subsidies have to be applied for through different online services, which increases the administrative burden for employers.
Helsinki benefit more convenient for employers
In the future, the employer will therefore have to choose which form of support to apply for. Employment Services will advise the employer on the choice of support.
Compared to the pay subsidy, using the Helsinki benefit is easier for the employer as there is no need to apply for payment at all. The Helsinki benefit is paid in one instalment or, in the case of a larger amount, in two instalments.
“This will reduce the administrative burden on the employer. At the same time, it will be easier to predict the amount of the support, because the employer will only receive one instead of two forms of support," Salonen adds.
Helsinki benefit to make it easier for employees to meet their work requirement
Thanks to the reform, the support will be targeted at hiring Helsinki residents who have been unemployed for at least three months and whose service needs have been assessed by Helsinki Employment Services.
“Helsinki wants to support employment as early on as possible," Salonen says.
Employment relationships supported by the Helsinki benefit are considered conventional jobs where the employer pays wages in accordance with the collective agreement and the employment is counted towards the employee's work requirement. Employment based on the pay subsidy does not count towards the work requirement.
The City of Helsinki pays the employer 50% of the wage costs as the Helsinki benefit. The employer receives support based on the duration of the employment up to a maximum of 12 months.
In the case of an apprenticeship, the benefit can be granted for the entire duration of the apprenticeship period.
Helsinki has been in charge of employment services since the beginning of 2025 and is actively working to streamline the hiring of unemployed jobseekers.
