Government’s proposal on EUR 1600 income limit for a residence permit for an employed person submitted to Parliament

The Government proposed on 6 June 2024 that in future, persons 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. In future, the income limit for a residence permit for an employed persons could be amended by government decree. The amendments are scheduled to enter into force on 1 November 2024.

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, these people are skilled workers. In 2023, around 13,000 persons applied for their first residence permit for an employed person and it was granted to approximately 10,000 people.

The Government proposes to set an income limit of EUR 1,600 for the residence permit for an employed person. The income limit refers to the pay that a person must receive for work that they arrive in Finland to do. Other income is not included in the income limit. 

“Finland needs work-based immigration to improve the availability of labour. At the same time, we must ensure there is a balance where work-based immigration strengthens the general government finances. This is our goal in setting the income limit for a residence permit for an employed person,” says Minister of Employment Arto Satonen.

A residence permit for an employed person currently requires 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, the suggested EUR 1,600 would be the minimum below which a residence permit for an employed person could not be granted.

The proposal aims to ensure that the people coming to work in Finland receive a pay that they can live on. 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 several sectors where work-based immigration is needed. 

Income limit could be amended by government decree

The Government proposes that the income limit for a residence permit for an employed person could be amended by government decree if necessary. 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 amendments would enter into force on 1 November 2024 .

Minor impact on the availability of labour nationally

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 and the availability of labour. According to the report, the income limit of EUR 1,600 would primarily affect certain occupations, sectors and regions. 

Sector-specific impacts would be greatest in the agriculture, forestry and fishery sector and in administrative and support services. 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.  

Inquiries:
Veera Svahn, Special Adviser to the Minister of Employment, tel. +358 295 047 321 (questions to the Minister of Employment)
Ariann Grandell, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 236 (legislative proposal)
Antti Kaihovaara, Chief Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 125 (report)