Income limit for residence permit for an employed person
The Government aims to promote work-based immigration in order to provide Finland with labour suitable for its needs. At the same time, Finland must ensure that immigrating is easy and responsible.
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 proposal was circulated for comments from 20.12.2023 to 31.1.2024.
More information on all Government measures related to work-based immigration.
As part of the policy on responsible labour immigration, Finland must ensure that the people coming to work here receive a pay that they can live on. This will also help combat labour exploitation. For these reasons, the Government will set a monthly income limit of EUR 1,600 for work-based residence permits.
Under the current Act, people coming from abroad to work in Finland must have secure means of subsistence. This means that, at a minimum, their pay must correspond with the collective agreement applicable to the job. If there is no applicable collective agreement, the pay must correspond with the pay level of similar tasks.
If the pay cannot be determined based on the above-mentioned criteria, the pay of a holder of a residence permit for an employed person should equal the amount that Kela counts as adding to the work requirement. This was about EUR 1,300 per month in 2022.
All employees whose sector or expertise does not have a separate residence permit should apply for a residence permit for an employed person. This usually means skilled workers. In order to apply for a residence permit for an employed person, the applicant must have confirmed employment in Finland.
Those remaining below the income limit are mostly part-time employees. The impacts will be specified as legislative drafting progresses. The income limit also supports the Government’s objective of increasing the provision of full-time work.
In accordance with the Government Programme, the Ministry of Economic Affairs and Employment, the Ministry of the Interior and the Ministry of Finance will examine how income limits for work-based residence permits affect the availability of labour and public finances. The results of the report, which will be completed in spring 2024, may be used to set potential income limits in the future.
The residence permit of a specialist already has an income limit. The pay must be at least equivalent to the gross pay of an average wage and salary earner, which is EUR 3,473 per month in 2023.
The Government aims to submit its proposal on the income limit for residence permits for employed persons and the laying down of income limits by decree in spring 2024. The changes would enter into force during 2024.
The Government will change the policies on work-based immigration to better match those of the other Nordic countries. However, the policies of different countries cannot be compared directly, as there are differences in the employment situation, population structure and residence permit systems.
Sweden will introduce 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. At the level of 2021, the monthly pay required for a work permit would be at least SEK 26,560, or approximately EUR 2,231. The requirement applies to a national work permit which corresponds with Finland’s residence permit for an employed person.
In Denmark, an annual salary of DKK 465,000, or around EUR 62,350, is 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.