Facts & Stats
- Capital City
Euro (€, EUR)
Finnish and Swedish
- Population size
- Ease of doing business
- Cost of living index
$$$$ (19 of 139 nations)
- Payroll frequency
- VAT - standard rate
- GDP - real growth rate
The Land of a Thousand Lakes (or, more accurately, 180,000 lakes), the Republic of Finland (Suomen tasavalta) is a parliamentary republic famous for its strong industrialized economy, pace-setting human development records, and a stable democracy.
Since 2018, Finland has been home to the world’s happiest people, driven by an extensive social welfare program, high per capita income, extensive civil liberties, and strong economic growth—all of which are factors that make Finland a great spot to expand your company’s reach to.
Grow your team in Finland with Remote
Looking to employ workers in Finland? Companies hiring in Finland must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Remote can employ your team in Finland on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Finland team. You can also pay contractors now in Finland with Remote.
Risks of misclassification
Finland, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Finland may lead to fines and penalties for the offending company.
Employing in Finland
Finnish labor regulations are spelled out across several government statutes.
Put together, these statutes define provisions for employee protections and workers’ rights applicable to Finland’s workforce of 2.5 million. Employees in Finland enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Finland.
Given its high human development index, extensive workers protections, and high per capita income level, Finland doesn’t have a government-mandated minimum wage; rather, employers are mandated to pay whatever rate agreed upon via collective bargaining, under which most Finnish workers are covered.
For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
We can help you get a new employee started in Finland fast. The minimum onboarding time we need is only 2 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
13 Public holidays
Competitive benefits package in Finland
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in Finland are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Taxes in Finland
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Finland.
Corporate income tax rate: 20%
Unemployment insurance (1.9% for whatever portion of the salary that exceeds €2,169,000)
Tentative accident insurance premium, depending on risk level taken at work
Group life insurance premium (if agreed in any collective bargain)
Types of leave
Employees are entitled to between 24 to 30 paid days off, depending on factors such as prior agreement and provisions made in the employment contract.
Employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, or any other work-related offenses. That aside, notice should be provided in advance – provided both parties agree to it.
In Finland, termination notice periods depend on how long the employment relation has lasted.
14 days: up to 1 year of employment
1 month: 1 – 4 years
2 months: 4 – 8 years
4 months: 8 – 12 months
6 months: More than 12 years
There’s no severance pay mandated by law, but employers must pay any outstanding vacation pay.
Probations can last up to six months and can be extended in place of any sick leave taken during the probation period.