Taxes in Finland

The employer’s health insurance contribution is paid to the Tax Administration and other self-assessed taxes.

The health insurance rate is laid down annually — e.g., the 2026 rate is 1.91% for employees between 16 and 67 years of age. The health insurance rate applies to the salaries to be paid in 2026.

The employer must set up and pay pension provisions for its employees if they are between 17 and 67 years old and if their monthly earnings exceed the lower limit for compulsory insurance. In 2026, the earnings must be at least EUR 71.72 per month. In addition, employees are obligated to participate in their pension provision by paying the employee pension contribution.

As of 2026, the total TyEL pension contribution for contract employers ranges between 24.66% and 24.85% of gross salary, depending on payroll size.

To manage the pension insurance, the employer must inform without delay one of the pension insurance companies — Elo, Ilmarinen, Varma, and Veritas — of the employee’s employment agreements that have begun and ended.

Pension insurance covers a pension in proportion to the earnings during the period of employment if the conditions for the pension are met. The pension is paid due to disability or old age.

Employers must take accident insurance for their employees against accidents at work and occupational diseases. However, if the salary doesn’t exceed EUR 1,500 in a calendar year, the employer is exempt from the obligation to take accident insurance.

The obligation applies to all employees in an employment relationship regardless of their salary, age, or duration. Statutory accident insurance applies to remote work as well.

The amount of accident insurance varies in relation to how much danger the work and the sector in which it’s performed present, with the average contribution being 0.7% in 2026.

Statutory accident insurance covers accidents at work, and while travelling to and from work, certain injuries considered accidents at work and occupational diseases caused by work.

The employer can take accident insurance from any insurance company providing accident insurance.

Both the employee and the employer have to pay unemployment insurance contributions. The employer is, however, responsible for paying the contributions.

The employee’s unemployment insurance contribution is calculated based on the salary amount paid by the employer. In 2026, the employee’s unemployment insurance contribution is 0.89% of gross salary, while the employer pays 0.31% of payroll up to €2,509,500 and 1.23% on the portion exceeding that amount.

The unemployment insurance contribution is levied on employees between 18 and 64.

Unemployment insurance contributions finance unemployment security, adult education, and pension benefits.

Generally, applicable collective agreements may impose an obligation on employers to take group life insurance.

The group life insurance contribution varies among insurance companies and is charged together with the accident insurance contribution.

Group life insurance covers compensation paid to the employee’s heirs in the event of the employee’s death.

In general, residents of Finland are subject to tax on their worldwide income, whereas non-residents are subject to tax on the income generated only within the country. To be considered a resident, the person must (1) have their home, and main place of abode in Finland, (2) have their home and main place of abode abroad but stay for more than six months in Finland, or (3) be a Finnish citizen who left Finland to live abroad less than three years ago (so-called three-year rule).

Earned income is taxed at state, municipal, and church levels. Earned income includes salary, comparable income (such as fringe benefits, employee issues and options based on the employment relationship), and pension. Certain tax deductions can also be made from earned income — e.g., trade union dues and home-work-home trip expenses. Earned income is taxed according to a progressive scale at the state level. A separate regulation regarding state-level income taxation is enacted each autumn for the following year.

Pension insurance is part of statutory social security. Pension insurance covers a pension in proportion to the earnings during the period of employment if the pension conditions are met. The pension is paid due to disability or old age.

In 2026, the employee’s TyEL contribution is 7.30% of gross salary, which is withheld from salary by the employer.

Both the employee and the employer have to pay unemployment insurance contributions. The employer is, however, responsible for paying the contributions.

As of 2023, the employee’s unemployment contribution is 0.89% of the salary.

Unemployment insurance contributions finance unemployment security, adult education, and pension benefits.

An employee can belong to a trade union, and trade union dues are usually levied on the employee’s salary. The dues are also tax deductible.

An employee can also belong to a voluntary unemployment fund, and the contribution is usually levied on the employee’s salary. The contribution is also tax deductible.