Country Guides

Finland

Quick Find

pin_drop

Capital

Helsinki

emoji_language

Language

Finnish and Swedish

captive_portal

Remote workers

42% as of 2021

payments

Currency

€ Euro (EUR)

alarm

Working hours

40 hours per week

beach_access

Public holidays

12 days per year

payment_arrow_down

Minimum hourly salary

No legal minimum

receipt

Tax year

Jan 1 - Dec 31

early_on

Date format

DD/MM/YYYY

Misclassification penalties

A number of penalties apply

Fun fact

Finland has the highest coffee consumption per capita in the world. On average, Finns drink more than 10 kg of coffee per person each year.

Employer contributions

  • payment_arrow_down

    Employer tax: 27.69% - 29.39%
  • cardiology

    Health Insurance: 1.16%
  • payments

    Pension insurance: 25.12% on average
  • personal_injury

    Accident insurance: 0.7%
  • shield_with_heart

    Unemployment insurance: 0.5% - 2.05%

Employee contributions

  • payment_arrow_down

    Employee tax: 10.05% - 43.98%
  • payments

    Pension insurance: 7.15% - 8.65% determined by age group
  • shield_with_heart

    Unemployment insurance: 1.5%
  • account_balance

    Municipality tax: 4.36% - 10.86%
  • account_balance

    Church tax: 1% - 2.1%

Income tax

Taxable earned income (€): 0 – 22,000

Tax on excess (%): 12.64%

Taxable earned income (€): 22,000 – 32,600

Tax on excess (%): 19.00%

Taxable earned income (€): 32,600 – 40,100

Tax on excess (%): 30.25%

Taxable earned income (€): 40,100 – 52,100

Tax on excess (%): 33.25%

Taxable earned income (€): Over 52,100

Tax on excess (%): 37.50%

Looking for a quick cost estimate?

Use our calculator to understand what are all the employment costs you have to consider in Finland .

Calculate employment cost in Finland arrow_forward_ios

Employer of Record in Finland

What is an EOR?

While an Employer of Record is the most typical way for legally employing a worker in a different country where the company doesn’t have an entity, in Finland we directly employ your worker. Doing this, we take care of all Finland compliance aspects of employment, including payroll, taxes, statutory benefits, employment contracts and more.

EOR responsibilities

  • check_circle

    Ensuring their employment is compliant with local employment laws
  • check_circle

    Processing local payroll
  • check_circle

    Filing employment related taxes and returns
  • check_circle

    Issuing payslips to the employee
  • check_circle

    Distributing salary payments

How it works

  • Company

    Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.

  • Boundless

    Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.

  • Employee

    Signs an employment contract with Boundless and fulfils all of their obligations as a worker for the company.

Statutory benefits in Finland

  • Medical Coverage

    Employers are obliged to provide occupational health care for all their employees regardless of the terms and duration of the employment relationship.

  • Pension

    The employer must arrange and pay the pension provision for their employees if they are between 17 and 67 years old.

  • Accident insurance

    Employers must take accident insurance for their employees against accidents at work and occupational diseases.

Common non-mandatory benefits in Finland

  • home

    Accommodation
  • directions_subway

    Company car
  • calculate

    Phone
  • payments

    Meals
  • playground_2

    Sports and culture benefits
  • payments

    Bonuses
  • currency_exchange

    Stock options
  • personal_injury

    Supplementary health insurance

  • school

    Learning & development
article

Employment agreement

emoji_language

Remote work

cardiology

Health & Safety

payments

Payslip

groups

Right to equal treatment based on gender

alarm

Overtime pay

shield_with_heart

Whistleblower protection

shield_with_heart

Privacy protection

check_circle

Pay transparency

Paid time off

24-30 days + bank holidays

Sick leave

1 year

Maternity leave

In Finland all leaves connected to having children fall under the umbrella of Family Leave. The total parental allowance is 320 days, which is expected to be equally split between both parent. The pregnant parent is entitled to 40 extra days on top of that.

Paternity leave

In Finland all leaves connected to having children fall under the umbrella of Family Leave. The total parental allowance is 320 days, which is expected to be equally split between both parents.

Parental leave

320 days split equally between both parents

Probation

According to the Employment Contracts Act, the employee and the employer can agree on a probationary period of up to six months. The only exception that allows a longer length is if the employer provides a special work-related training that lasts more than six continuous months.

Non-compete

A non-compete agreement can be in force for a maximum of one year after the end of the employment relationship.

Payment frequency

Salaries must be paid on the last day of each pay period — a payday — unless otherwise agreed in the employment/collective agreement. That typically happens to be the last day of the month.

Payday

Salaries must be paid on the last day of each pay period — a payday — unless otherwise agreed in the employment/collective agreement. That typically happens to be the last day of the month.

An indefinitely valid employment agreement can be terminated with a notice to terminate. The notice periods are specified in the regulation or in the applicable collective agreement, and the employment agreement must be observed. The employer may not terminate an employment relationship without a proper and weighty reason. The proper and weighty reason can be related to the employee’s person or financial and production-related grounds.

The employment agreement cannot be terminated on financial and production-related grounds if the employee can be placed in or trained for other duties. If the employer has terminated an employment agreement contrary to the termination grounds, it must be ordered to pay compensation for the unjustified termination of the employment agreement.

Employees dismissed from their jobs may receive basic unemployment allowance from KELA or earnings-related unemployment allowance from an unemployment fund. The grounds for receiving basic or earnings-related allowance are otherwise the same, but the unemployed person needs to be a member of an unemployment fund to receive the allowance.

FAQs

You have four main options for hiring in Finland. You can run payroll from your HQ for short-term cases, engage contractors for project-based work, set up a local entity to hire directly, or partner with an Employer of Record. Pay rates and conditions are typically set by collective bargaining agreements rather than statutory minimums. An EOR allows compliant Finnish employment without establishing a local entity.

Contractors work well when the relationship is project-based and the person serves multiple clients. If an individual gives their full and undivided attention to your company in Finland, employment is the right structure under Finnish law, covering entitlements like paid annual leave, sick leave, and TyEL pension contributions. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in Finland.

HR compliance in Finland means your policies and procedures follow all applicable employment laws and collective bargaining agreements. When you hire in Finland, this matters to protect employee rights and reduce employer risk. Compliance covers labour law, sick leave, annual leave (24-30 days), family leave (up to 320 days shared), tax credits, and working hours regulations.

An Employer of Record is the legal employer of the individual in Finland for government, tax, and employment purposes. It provides a locally compliant contract, runs payroll, files employment taxes, and manages statutory benefits such as 320 days of family leave shared between parents and 24-30 days of annual leave. You remain responsible for sourcing workers, managing day-to-day work, and funding payroll each cycle.

Boundless ensures HR compliance in Finland by partnering with local employment lawyers and advisers who review contracts and documentation for legal accuracy. We align on key requirements such as payroll, social protection, data protection, notice periods, and work-from-home regulations. When sensitive issues arise, our internal team works with local experts to resolve them promptly and in line with Finnish regulations.

Can’t find what you’re after?

Or maybe the country you’re looking into isn’t available yet?

Talk to us

Employment cost calculator

Understand the employment costs you have to consider in any country

Learn more

Global employment made gloriously uneventful

Talk to us and discover Boundless possibilities

Book a personalised discovery and get your questions answered by our experts.