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Helsinki pays employees extra late payment compensation for payroll errors

The City of Helsinki has decided to pay its employees a one-off and extra late payment compensation due to the payroll errors. The late payment compensation will be paid in addition to the interest for late payment provided for in the Interest Act. Interest for late payments is payable immediately to employees whose wages have been late.

The late payment compensation will be paid to all those whose wages have been late. The amount of the late payment compensation depends on the amount of the interest for late payment. Employees will also be compensated for economic losses caused by the payroll issues. The city will also pay a waiting-time salary to those whose employment contract has ended and whose final salary has been late. Other possible compensations still require separate preparation and will be communicated to the personnel as soon as possible.

Total number of uncorrected payroll errors decreased in August

In the city’s payroll, the total number of uncorrected payroll errors decreased in August. However, according to a recent situation report, the number of completely unpaid wages and overpaid wages increased compared to the situation a week ago, between 26 August and 1 September. The increase was due to the payday on 31 August. Paydays have often been accompanied by a short spike in issues. The number of underpaid wages and other payroll errors is lower than in the previous week.

On 1 September, the number of unpaid wages was 115, while the number of underpaid wages was 3,947. Effort is being made to pay unpaid wages within approximately two working days after the payroll customer service receives notice of the unpaid wage.

The City of Helsinki introduced a new payroll system in the spring. The payroll and personnel information system previously used by the city dates back to the 1980s, and its technical support ends at the turn of the year. Sarastia Oy, the supplier of the new payroll system, and the City of Helsinki are working closely together to make the system serve the needs of Helsinki. According to current estimates, it will take the whole autumn to stabilise the payroll situation.