Income limit for residence permit for an employed person
An income limit of EUR 1,600 will be set for the residence permit for an employed person. The objective is to ensure that people coming to work in Finland receive a pay they can live on. In addition, the income limit will support the aim of increasing full-time employment in Finland.
The Government submitted the proposal to Parliament on 6 June 2024.
In future, a person arriving in Finland with a residence permit for an employed person should receive a monthly pay of at least EUR 1,600 for work carried out in Finland.
The current requirement is a pay in accordance with a collective agreement or the lower limit of the requirement for sufficient financial resources, that is, approximately EUR 1,400. The pay must comply with the collective agreement in future too. However, EUR 1,600 would be the minimum below which a residence permit for an employed person could not be granted.
In future, the income limit for a residence permit for an employed persons could be amended by government decree.
As part of responsible labour immigration, Finland must ensure that the people coming to work here receive a pay that they can live on. Immigration must strengthen the general government finances without endangering the availability of labour.
The proposal also supports the Government’s objective of increasing full-time work in Finland. The income limit of EUR 1,600 corresponds with the minimum pay for full-time work based on collective agreements in many sectors where work-based immigration is needed.
All employees in sectors or groups of experts for which no separate residence permit exists apply for a residence permit for an employed person. Typically, this means skilled workers. Specialists apply for a different permit, for example. In order to apply for a residence permit for an employed person, the applicant must have confirmed employment in Finland.
A person arriving in Finland with a residence permit for an employed person should receive a monthly pay of at least EUR 1,600 for work carried out in Finland. For the purposes of the income limit, basic pay without any allowances is considered. Fringe benefits may be considered as long as they comply with the Finnish Tax Administration’s instructions and are not higher than the monetary wages.
When a person already in Finland applies for an extended permit, they must prove that their pay is at least EUR 1,600 per month. However, applicants for an extended permit would have a transition period of three months from the entry into force of the Act. During this period, the extended permit would be granted in accordance with the old income limit.
An employee arriving in Finland must have confirmed employment in Finland when applying for a residence permit for an employed person. The pay will be checked in connection with the residence permit application. The pay will be reviewed again if the employee applies for an extended permit.
In accordance with the Government Programme, the Ministry of Economic Affairs and Employment has assessed the impacts of the income limit on general government finances. According to the report, an income limit of EUR 1,600 would have an insignificant effect on the availability of labour nationally. It is estimated that a few hundred people would remain below the income limit of EUR 1,600 per year, depending on the development of the earnings level in different occupations and the demand for labour.
According to the report by the Ministry of Economic Affairs and Employment, sector-specific impacts of the EUR 1,600 income limit would be greatest in the agriculture, forestry and fishery sector and in cleaning services. At the national level, however, the impacts on the availability of labour would be minor.
The income limit of EUR 1,600 corresponds with the minimum pay for full-time work based on collective agreements in several sectors where work-based immigration is needed.
In the future, the Government could amend the income limit for a residence permit for an employed person by government decree. According to the Act now adopted, the income limit should be set at a level where work-based immigration strengthens the general government finances and does not unnecessarily endanger the availability of labour.
The Government Programme sets an income limit only for the residence permit for an employed person.
The residence permit for a specialist already has an income limit. The pay must be at least equivalent to the gross pay of an average employee, which was EUR 3,473 per month in 2023.
It is proposed that the proposal enter into force on 1 November 2024.
Sweden introduced a separate income limit for work permits in November 2023. A work permit may be granted if the work enables a foreigner to earn a good subsistence. The Swedish Government has set the income level of a work permit at 80 per cent of the median salary in Sweden. In June 2024, the median pay in Sweden was SEK 34,200 (ca. EUR 2,970), which means that the pay required for a work permit (80 per cent of the median pay) is at least SEK 27,360 (ca. EUR 2,376) per month.
In Denmark, an annual salary of DKK 465,000, or around EUR 62,350, was required to obtain a work permit in 2023. The amount of the required pay varies from year to year. In this context, it should be noted that the pay level in Denmark is higher than in Finland.
However, the policies of different countries cannot be compared directly, as there are differences in employment, population structure and residence permit systems.