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Temporary support and remuneration 

The application opened on 5.6.2020

The catering business was severely restricted by legislation to prevent the spread of corona virus 4.4 - 31.5.2020. The Parliament of Finland demanded restrictions when approving compensation for reasonable costs and measures to mitigate the effects.

The model consists of two complementary parts, both of which can be received.

Remuneration for business restriction

• Reasonable remuneration for costs incurred under the business restriction
• Remuneration is granted for rents for premises, costs for plumbing and electricity and similar inflexible running expenses incurred by the entrepreneur, that is not raw material purchases or labour costs, nor investment costs.
• Remuneration is distributed on the change caused by the company's sales under the restriction.
• The allowance is usually paid without an application, so-called mass payment. If your company is not covered by automatic payment, support is sought in an instalment and with an application (= Companies that do not have a 4/2020 value added tax return filed with the tax authority or who are a company with other main business or a staff restaurant). The application is open until 31.8.2020.

Support for re-employment

The supports are granted and paid for by the Development and Administration centre for ELY Centres and TE Offices (KEHA-centre).

Information on the situation

The processing of applications was initiated in July following the completion of the mass payments of remuneration for the restriction of business.

The data in the table are updated on weekdays.

Applications are processed in order of arrival. Applications received are currently being processed

• remuneration for business restriction 24.6.2020
• support for re-employment 5.7.2020

12 August 2020: The application process for remuneration and compensation for catering companies is well under way – there is still time to apply

Remuneration of business restriction can be applied for from the ELY centres' and the TE Offices' development and administration centre (KEHA centre) until the 31st of August 2020 and re-employment support until the 31st of October 2020.

Applications are processed in order of arrival. During the first few days following the opening of the application, many applications were made, which means that there has been a lot of urgency with the processing, but the situation will be easier in the next few days and the processing times are tighten as the number of applications decreases every day. The KEHA Centre also adds case handlers to speed up the processing of applications.

There have been 57 applications rejected in support of re-employment (situation 10 August). The most common reasons to rejections have been the lack of or low salary amounts in February 2020, or the company has been included in a group, in which case the subsidiary's application has been rejected and the parent company's application has been complemented in accordance with this, if not the subsidiary has drawn back its application. A company that meets the definition of a company in difficulties has also got a rejection decision.

In addition, the companies get a written decision sent along with instructions concerning claim for a revised decision. Application if amendment must be submitted to KEHA centre within thirty (30) days from the date of receipt of the decision.

Remuneration of business restriction through mass payment

In June, remuneration of business restriction was implemented as an automatic mass payment for catering companies as their main occupation, whose VAT information from April the KEHA centre received from the Tax Administration The advance payment was made in a mass payment based on an estimated estimate of the decrease in sales caused by the restriction and the final payment on the actual sales data received from the Tax Administration. KEHA centre has paid in all 74,49 million euros in mass payments to 7 016 companies. Of the above amount, approximately EUR 2,95 million will be reclaimed from around a thousand companies, of which EUR 1,1 million has already been repaid from 341 companies.

There is still some companies in processing that had not submitted its VAT return for April by June 12th that was needed in order to complete the final payment of the mass payment, and companies that were objects for mass payment, but as according to the Tax Administration's list should not be paid for some other reason. For these companies, the KEHA centre requests a new list from the Tax Administration on the 17th of August 2020 and - if the VAT return is valid and the sales reduction is clear - the final support is paid to the company during the month of August.

Companies that have received a mass payment have received a payment decision by post, with the exception of companies that had not submitted the VAT return in due time. The decision is accompanied by an instruction to submit a request for review to the person who is dissatisfied with the decision.

Read more: press release 12.8.2020