Changes in the administrative branch of the Ministry of Economic Affairs and Employment at the turn of the year 2024−2025
The start of 2025 will see the entry into force of new acts and decrees. The most important changes in the administrative branch of the Ministry of Economic Affairs and Employment are summarised below.
TE services 2024: Municipalities to be responsible for employment services with central government taking a guiding role
The structures and responsibilities for organising employment services will be reformed at the turn of the year. As a result of the reform, the responsibility for organising employment services will be transferred to municipalities and employment areas formed by municipalities on 1 January 2025. The role of the central government will focus on guidance, development and the nationwide functioning of the employment service system.
Although the responsibility for organising employment services will be transferred to municipalities, the electronic service system Työmarkkinatori will remain in use. It will continue to provide services for both private customers and employers, and through it any matters related to job search can be attended to.
Press release 18 December 2024: Employment services will be reformed on 1 January 2025 – Municipalities to be responsible for employment services with central government taking a guiding role
KOTO24: Municipalities to assume overall responsibility for promoting integration
The comprehensive reform of the Integration Act (KOTO24) aims to speed up the integration and employment of immigrants and to strengthen their knowledge of Finnish society. The reform is related to the TE24 reform where employment and economic development services are transferred from the central government to municipalities.
With municipalities taking overall responsibility for promoting integration, competence development and employment-promoting services, coordinating and organising various services will become easier from 1 January 2025.
Press release 18 December 2024: Reform to increase overall responsibility of municipalities for integration
Amendments to the conciliation system to enter into force
The development of the conciliation system is one of the Government’s labour market reforms. It will strengthen the consideration of the overall benefit of the national economy and the functioning of wage formation in the conciliation procedure. The amendments will enter into force on 1 January 2025.
The legislative amendments will affect the work of the National Conciliator, conciliators and conciliation boards. The social partners will still be able to conclude agreements with each other as before.
Press release 19 December 2024: Amendments to the conciliation system to enter into force on 1 January 2025
Opportunities for local collective bargaining to expand
The reform of local collective bargaining will enter into force on 1 January 2025. As a result of the reform, local collective bargaining will be possible regardless of whether the company belongs to an employers' association or the kind of employee representation the company has.
Press release 19 December 2024: Opportunities for local collective bargaining to expand
A residence permit for an employed person to require a monthly pay of EUR 1,600
A person arriving in Finland with a residence permit for an employed person must receive a monthly pay of at least EUR 1,600 for work carried out in Finland. The reform aims to ensure that the people coming to work in Finland receive a pay that they can live on.
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.
Press release 06 June 2024: Government’s proposal on EUR 1600 income limit for a residence permit for an employed person submitted to Parliament
Parliamentary reply
Distribution obligation for renewable fuels to rise to 16.5 per cent
The use of renewable fuels in transport will be promoted with a distribution obligation. This means that fuel distributors must ensure that a certain proportion of the transport fuel they offer includes fuel from renewable energy sources, such as bioethanol, biodiesel or synthetic biofuel.
There will be a moderate increase to the distribution obligation from the current 13.5 per cent in 2025–2027. The obligation will be 16.5 per cent in 2025, 19.5 per cent in 2026 and 22.5 per cent in 2027.
The additional obligation for advanced renewable fuels would be four percentage points in 2026 and 2027.
A flexibility mechanism will be added to the range of instruments to help the distributor meet the distribution obligation. Through the mechanism, the distributor may finance other alternative emission reduction measures in Finland in the effort sharing sector and later also in the land use, land-use change and forestry sector.
The proposed Acts will enter into force on 1 January 2025.
Press release 19 December 2024: Distribution obligation to rise moderately to 16.5 per cent next year
New act to promote offshore wind power construction in the exclusive economic zone
The new Act on Offshore Wind Power in the Exclusive Economic Zone will promote the construction of offshore wind power in Finland by clarifying the regulation on wind power projects. The Act will enter into force on 1 January 2025.
The Government will be able to select areas in the exclusive economic zone that are suitable to be used for offshore wind power and make decisions concerning competitive tendering for these. Competitive tendering for the areas will be organised by the Energy Authority. The first tenders for offshore wind power plants may be organised at the end of next year.
The winner of competitive tendering would have the exclusive right to apply for an exploitation permit from the Government for a specific area. The exploitation permit grants the offshore wind power project the right of use in the area for a fixed period of time.
Press release 19 December 2024: Act on Offshore Wind Power in the Exclusive Economic Zone enters into force – First tenders could be organised at the end of 2025
Työkanava Ltd to be dissolved
The launch of Työkanava’s activities to employ people with impaired capacity to work has not met the objectives set for the company.
In its spending limits discussion in spring 2024, the Government decided to propose to Parliament that, as part of the consolidation of public finances, the funding of Työkanava Ltd be discontinued and the legislation concerning the company be repealed.
The acts will enter into force on 1 January 2025.
Dissolution of Työkanava Ltd progresses - Ministry of Economic Affairs and Employment
Parliamentary reply to the Government proposal to Parliament on repealing the legislation on the limited liability company named Työkanava Ltd (HE 118/2024 vp; EV 133/2024 vp)
Central government contribution to the Finnish Seamen’s Service to be terminated
The Act on Seamen’s Service will be amended to terminate central government funding for seamen’s services. The aim is to reduce central government expenditure in accordance with the Government Programme.
In 2025−2027, the amount of service fee paid to the Finnish Seamen’s Service by seamen and their employers will be increased by one and a half times. The Ministry of Economic Affairs and Employment will monitor the financial position of the Finnish Seamen’s Service.
The Act will enter into force on 1 January 2025.
Press release 3 October 2024: Government proposes amendment to the Act on Seamen’s Service
Parliamentary reply
Maximum amount of indemnification laid down in the Co-operation Act to be adjusted
The maximum amount of indemnification laid down in the Act on Co-operation within Undertakings will be adjusted by decree to correspond to the change in the value of money. The decree will enter into force on 1 January 2025. The change is not related to the Government’s legislative projects.
Changes to fees charged by agencies in the administrative branch of the Ministry of Economic Affairs and Employment
The fees charged for services of several agencies in the administrative branch of the Ministry of Economic Affairs and Employment will change at the turn of the year.
- Decree of the Ministry of Economic Affairs and Employment on chargeable services of the Finnish Patent and Registration Office in 2025 and 2026
- Decree of the Ministry of Economic Affairs and Employment on chargeable services of the Finnish Safety and Chemicals Agency in 2025–2026
- Government Decree on chargeable services of the Centres for Economic Development, Transport and the Environment, and of the KEHA Centre in 2025