Tukipalkat

Tukipalkat, often translated as "support wages" or "subsidy wages," is a Finnish term referring to a system of wage subsidies provided by the government to employers. The primary goal of tukipalkat is to encourage employment, particularly for individuals who might face challenges in the open labor market. This includes long-term unemployed individuals, people with disabilities, or those who have recently completed education or training.

The system typically involves the government covering a portion of the employee's salary for a specified period. This reduces the labor costs for the employer, making it more financially viable to hire or retain workers who might otherwise be deemed too expensive or risky. The subsidy amount and duration can vary depending on the specific program and the characteristics of the employee.

Tukipalkat are administered by Finnish employment and economic development offices (TE-toimistot). Employers apply for the subsidy and must demonstrate that the employment relationship is genuine and that the subsidy will lead to employment that would not otherwise have occurred. The intention is not to subsidize jobs that would have been created regardless of the subsidy.

The effectiveness of tukipalkat is a subject of ongoing debate. Proponents argue that they are an important tool for reducing unemployment, improving labor market integration, and preventing social exclusion. Critics sometimes raise concerns about potential market distortions, dependency on subsidies, and whether they truly create sustainable employment. Nevertheless, tukipalkat remain a significant component of Finland's active labor market policy.