Hire employees and contractors in Finland

Remote’s guide to employing in Finland.

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  • Capital city

    Helsinki

  • Currency

    Euro
    (, EUR)

  • Population size

    5,536,146
    (est. December 2020)

  • Languages spoken

    Finnish, Swedish

  • Availability

    Remote-Owned Local Entity

    We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.

Facts & Stats

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.

  • Capital city

    Helsinki

  • Currency

    Euro
    (, EUR)

  • Languages spoken

    Finnish, Swedish

  • Population size

    5,536,146 (est. December 2020)

  • Ease of doing business

    Very easy

  • Cost of living index

    $$$$ (19 of 139 nations)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    24%

  • GDP - real growth rate

    1.1 (2019)

Grow your team in Finland with Remote

To employ in Finland, you must either own a local legal entity in the country or work with a global employment solution. The challenge of managing payroll, benefits, taxes, and compliance in Finland along with multiple other countries can get complicated, especially without established local relationships.

Remote can handle the difficult parts of hiring employees and contractors in Finland so you can hire top local talent quickly, efficiently, and in full compliance with all relevant legislation. We take on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.

Risks
of misclassification

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.

Public holidays

Below are national public holidays applicable for all regions in this country. Remote customers have access to a detailed list of regional public holidays within the Remote platform. Sign up now to access all public holiday information.

Minimum Wage

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.

Payroll Cycle

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.

Onboarding Time

We can help you get a new employee started in Finland fast. The minimum onboarding time we need is only 9 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.

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:

  • Health Insurance
  • Dental Insurance
  • Vision Insurance
  • Mental Health Support
  • Pension or 401(K)
  • Life and Disability Insurance

Calculate the cost to hire an employee
in Finland

Taxes in Finland

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Finland.

  • Employer

    • Corporate income tax rate: 20%

    • 16.95% - Pension insurance

    • 1.53% - Health insurance

    • 0.05% - 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)

  • Employee

    • 7.15% - Pension insurance (8.65% charged if the employee is aged 53 - 62)

    • 0.68% - Health insurance (1.86% for salaries above €14,766)

    • 1.4% - Unemployment insurance

  • Personal income tax rates

    • 0% - Up to €18,600

    • 6% - 18,600 – 27,900

    • 17.25% - 27,900 – 45,900

    • 21.25% - 45,490 – 80,500

    • 31.25% - Over 80,500

Types of leave

Paid time off

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.

Public holidays

Finnish labor law mandates that employees can take 11 paid public holidays off, and will be entitled to double pay if required to work on a holiday. Provisions around any holidays not covered by the law can be defined during a collective bargaining agreement, applicable to both parties.

Sick leave

Employees are entitled to 9 workdays of sick leave annually, compensated at a rate equivalent to 100% of the employee’s salary—provided the employee has worked with the employer for at least an entire month. Employees who’ve worked with an employee for less than a month will earn 50% of their wages for any sick leave taken.

After the first ten days of an illness, employees can apply for up to 300 days of sick leave.

Maternity leave

Expectant mothers are entitled to 105 workdays of unpaid maternity leave, starting anywhere from 30 – 50 days before delivery. Mothers can claim the benefit from Kela (the Finnish Social Insurance Institution). If the employer opts to continue paying a full or part salary during the maternity leave, Kela pays the allowance to the employer.

Paternity/Parental leave

Fathers can take up to 54 workdays of unpaid paternity leave, starting when the mother’s maternity leave begins, either at a stretch or in batches, but not exceeding the newborn’s second birthday. Similarly, parents can claim the benefit from Kela. If the employer opts to continue paying a full or part salary during the paternity leave, Kela pays the allowance to the employer.

Education leave

Employees who have worked with an employer for up to a year are entitled to two years of unpaid leave, stretching over five years and broken into installments as necessary.

Employees who have worked with an employer for at least three months but less than a year can take up to 5 days off for studies.

Other leave

Hospitalization leave: Parents are entitled to 4 days of leave if any of their children fall ill; compensation for hospitalization leave is determined by collective bargaining.

Employment termination

Termination process

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.

Notice period

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

Severance pay

There’s no severance pay mandated by law, but employers must pay any outstanding vacation pay.

Probation periods

Probations can last up to six months and can be extended in place of any sick leave taken during the probation period.

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