Finland
Introduction
General overview & country facts, as well as labour regulations.
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.
COUNTRY PLAYBOOK
Finland
Everything you need to know about payroll, benefits & hiring top talent in Finland
Currency
Euro (EUR)
Salary payment frequency
Monthly
Capital
Helsinki
Time Zone
GMT +2:00
Official Languages
Finnish and Swedish
Is English spoken?
Yes
Quick Links
Introduction
General Overview & Economic Facts
- Finland, officially known as the Republic of Finland, is a Nordic country located in Northern Europe
- It is a parliamentary republic known for its strong economic growth, steady democracy, broad social welfare program, and extensive civil liberties
- Finland spans an area of 338,455 km2 (130,678 sq mi) with a population of 5.5 million
- Finland’s economy ranks 42nd by nominal GDP (2021) and 57th by PPP (2021)
- Finland ranks 11th on the HDI (2019)
Why Employ In Finland?
- The main exports from Finland are telecommunications equipment, passenger cars and forestry products
- 10.95% of the population is between the ages of 15 and 24 years, with 37.37% of the population being between the ages of 25 and 54. Finland has a mix of a fairly youthful population, making it a favourable country to employ young, energetic employees, as well as a good country to hire more experienced professionals
Overview Of The Labour Law
- Finland’s main sources of labour law includes the Employment Contracts Act, Working Hours Act, Annual Holidays Act, Act on Co-operation within Undertakings, Act on Equality between Women and Men and any applicable bargaining agreements
- Finish labour law provides very high protection to employees
Fun Country Facts
- Finland has free education, even at university level
- Finland hosts a whole bunch of odd competitions, including wife carrying, mobile phone throwing, air guitar and boot throwing
- Traffic violation fines depend on how much you earn
Why Use Playroll Services For Finland?
- Employing in Finland requires companies to have their own legal entity in the country as well as to manage payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Finland
- With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing a thriving team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Unemployment Insurance
Earning between EUR 0.00 and EUR 2197500.00 per year
0.50%
Earning EUR 2197500.00 or more
2.05%
Pension
Called TyEL in Finland
Calculated on a minimum salary of EUR 62.88 per month
24.85%
Health Insurance
Calculated on a minimum salary of EUR 15,128.00 per year
1.34%
Occupational Accident and Disease Insurance Contribution
Employee’s wages paid during a calendar year must exceed EUR 1300.00
Rate varies by employee’s salary, job risk and insurance provider
0.05 – 0.70%
Group Life Insurance
Average group life insurance is 0.06% of the employer’s wage sum and is paid in full by the employer
Rates vary by insurance provider
± 0.06%
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Unemployment Insurance
1.50%
Pension Fund
Called TyEL
Age 17 – 52
7.15%
Age 53 – 62
8.65%
Age 63 – 67
7.15%
Health Insurance
Medical care coverage
0.53%
Daily allowance coverage
1.18%
Income Tax
Income Tax is ‘Pay As You Earn’
Federal tax of 30% is applied on vacation premium exemptions, grocery coupons, and Christmas bonuses
Income bracket per annum
0.00 – 9200.00
0.00%
19200.00 – 28700.00
EUR 8.00 + 6.00%
28700.00 – 47300.00
EUR 578.00 + 17.25%
47300.00 – 82900.00
EUR 3786.50 + 21.25%
82900.00 or more
EUR 11351.50 + 31.25%
Employment Terms
General
Minimum Wage
- There is not statutory minimum wage
Working Hours
- Maximum of 8 hours per day and 40 hours per week
- Minimum of 60-minute meal interval after 6 hours of work
- Typical working hours are 08h00 to 17h00, Monday to Friday
Overtime
- Maximum of 250 overtime hours per year
Notice Period
- Employed between 0 and 1 years- 14 days’ notice
- Employed between 1 and 4 years- 1 months’ notice
- Employed between 4 and 8 years- 2 months’ notice
- Employed between 8 and 12 years- 4 months’ notice
- Employed for 12 or more years- 6 months’ notice
Severance Pay
- There is no statutory severance pay
Probation Period
- There is no statutory probation period
- Employees can expect a probation period of 6 months for permanent contracts and half the employment contract for fixed term contracts
Bonus
- There is no statutory bonus
Public Holidays
Public holidays 2022
- January 1st – New Year’s Day
- January 6th – Epiphany
- April 15th – Good Friday
- April 17th – Easter Sunday
- April 18th – Easter Monday
- May 1st – May Day
- May 26th – Ascension Day
- June 5th – Whit Sunday
- June 24th – Midsummer’s Eve
- June 25th – Midsummer Day
- November 5th – All Saints’ Day
- December 6th – Independence Day
- December 24th – Christmas Eve
- December 25th – Christmas Day
- December 25th – 2nd Day of Christmas
Leave
Paid Leave / Vacation Days
- Paid leave
- Paid by employer
- Employed between 0 and 1 year- 24 days per year
- Employed for 1 year or longer- 30 days per year
Sick Leave
- Paid leave
- Paid by employer
- 10 days per year
Maternity Leave
- Paid by leave
- Paid by Social Security
- 105 days per year
Paternity Leave
- Paid leave
- Paid by Social Security
- 54 days per year
Parental Leave
- Paid leave
- Paid by Social Security
- 158 days per year
Study Leave
- Unpaid leave
- 2 days per 5-year period
Childcare Leave
- Paid leave
- Paid by Social Security
- 1 month per year
Adoption Leave
- Paid leave
- Paid by Social Security
- 233 days per year
Start hiring in Finland today!