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  • Payment of remunerations

    How do we pay out remunerations to music performers and producers?

    Gramex remunerations are an important and statutory part of a professional’s livelihood. We pay out remunerations to musicians performing on phonograms and to producers four times a year.

    Remunerations are paid for the public use of a phonogram, for instance, on the radio, in television, in a public event or at customer or work facilities. They are also paid when the recording is copied for non-private use. Remunerations are also paid out for international use of music. Different types or remunerations are paid out during different distribution periods. Note that remunerations are paid ‘after the fact’ – meaning that the music has been used earlier in the year or in the preceding year.

    What does the distribution schedule mean?
    At the end of each calendar year, Gramex’s board of directors approves the main distribution schedule for the next calendar year. Once the distribution schedule is confirmed, it is published on Gramex’s home page by the following January.
    Where can I find the amount of remuneration I will be receiving?
    You can find your remuneration payment breakdown and track play statistics at MyGramex. MyGramex also includes playtime statistics that show you, for instance, which radio station has played the song and how many times. Please note that track play statistics are not transferred to MyGramex immediately following radio play, for instance. They become available after the day of distribution. The payment breakdown is available approximately one week before distribution.
    Our song played on the radio a month ago. When do we receive remunerations?
    Gramex pays out remunerations for radio play four times a year. For instance, remunerations from January to March are paid out in June. For a more detailed distribution schedule, see here.

    Division of remunerations

    At Gramex, the division of remunerations is decided by its member organisations, i.e. performer and producer representatives. Rules of distribution determine the distribution and division of remunerations. At the moment, we use rules of distribution that were confirmed in 2019.

    Remunerations accumulated for one phonogram are calculated, divided and paid out in accordance with Gramex’s rules of distribution.
    The main rules are as follows:

    • The producer is allocated 50% of the remunerations
    • The band is allocated the other 50%.
    • Within the band, the division is based on the phonogram report: remunerations are divided relative to each performer’s number of performances (recorded ‘tracks’) on the phonogram. The rule of division between vocalist, conductor and musicians is specified in the rules of distribution.

    A successful distribution requires that the phonogram’s producer has submitted a phonogram report to Gramex. Performers can also go to MyGramex and check that all phonograms have been reported correctly on their client account.

    What is the minimum payable distribution?
    Currently, the minimum payable distribution is 5 euros. If the remunerations for a year do not reach the minimum, annual remunerations are accumulated for a maximum period of three years.
    Can remunerations be paid to a collective, such as a musicians’ association or a choir?
    In certain situations, remunerations can be collectively paid to a society, typically set up for an orchestra or a choir, for all music performers that took part in the recording. In this case, the term ‘collective’ is used for the orchestra or choir, and the remunerations are called ‘collective remunerations’. Get in touch with our customer service to set up collective remunerations.

    Size of remunerations

    The size of Gramex distributions are based on licence sales (remunerations) collected and received by Gramex. Distribution is typically based on phonogram-specific usage metric reports that customers using the music provide.

    The size of remunerations vary contractually based on music user and type of use. For instance, remuneration for track plays in national radio is slightly different from plays in private local radio.

    Please note that administration fees are deducted from the distributed amount, as well as any statutory deductions and deductions required by the by-laws of Gramex. The deductions are described in MyGramex.

    My song is playing in a local bar. Am I entitled to remunerations?
    Gramex collects and pays out remunerations when music is used, for example, as background music in a bar – as long as the bar has obtained the correct licences. Every restaurant that plays background music should have a licence acquired through Musiikkiluvat.fi. Background music remunerations are paid to the performers and producers of music based on usage reports. If no usage reports are available, remunerations are calculated based on music play in Finnish radio, and with the help of complementary research data if necessary.
    What are administration fees or withholds?
    The law stipulates that Gramex cand withhold any costs incurred by the collection and administration of remunerations at the time of distribution. The law also permits withholds for promotional activities that are offered to all clients. In 2022, our total cost of operations was a historically low 13.2%. Please see our annual reviews for a transparent breakdown of expenses. You can check your own distribution and any related withholds in MyGramex. It is also worth noting that Gramex clients are not charged any entry or membership fees.
    My song is played on YouTube, Spotify and TikTok. Am I entitled to Gramex remunerations?
    Gramex does not license music for use in social media or streaming services. The producers of phonograms (such as record labels) manage this type of licensing. For this reason, Gramex does not pay remunerations for plays on, for example, YouTube, Spotify or TikTok.

    Ask more about distribution

    Is something still unclear? See our frequently asked questions or send e-mail to our customer service at tilitys (at) gramex.fi.

    Frequently asked questions