The EUR 80 million of the municipalities passed from the state at Häme to freeze payroll payments in Häme

The EUR 80 million of the municipalities passed from the state at Häme to freeze payroll payments in Häme

The hand wipes the sink with a rag.
Employers are encouraged to wash unemployed jobseekers by paying aid for wage costs. Illustration.

It was known in the municipal employment areas that they would be transferred to wage subsidies and other charges granted from the state last year, but the amount of the amount surprised.

There has been a delay in paying wage subsidies. This is due to the transfer of the so-called payment debt to municipalities from the ELY Centers Development and Administration Center (KIHA). For example, in the employment areas of Hämeenlinna, Lahti and Southern Häme, payroll payments are delayed.

– We were prepared for the December payment applications for us to be processed. There were them there since last year, he says.

There have also been delays in the payment of start -up money, but this amount has already succeeded in dismantling the employment areas.

According to the Association of Finnish Local and Regional Authorities, the arrears transferred from the state to municipalities are around EUR 80 million in the whole country, of which 8 million will remain in the municipal account. The rest of the state will pay later.

People walk away from the camera.  People walk on the pedestrian street with buildings.  Next to the car road is a car.
Employment services previously managed by the Häme TE Office were transferred to the municipalities of the area. For example, Lahti has its own employment area. Archive picture.

– The state promises to pay last year’s expenses this year, but in the municipal economy it means that the council has to receive additional appropriations.

Delay in wage subsidy can cause difficulties, for example, to a poor organization that was washed by the unemployed.

State: Payment debt was known

According to Smolander, the amounts are not exceptional either.

– Wage subsidies and other employment services decisions have been made last year.

The subsidies were transferred to the municipalities from the ELY Center for a long time before the turn of the year. Smolander explains that this is due to the fact that employers can retrieve pay subsidy with a delay.

Payment experts dwindled

However, Smolander, Director of Responsibility, states that a little extra debt will be transferred to the employment authorities. This is due to the fact that almost a quarter of the KEHA’s paying experts earned their retirement or resigned. So they were less charges than before by the end of the year.

In addition, KEKA was transferred to employment areas, but they were not received, for example, in Kanta-Häme.