Grow your team in Finland with Remote
Remote currently offers contractor payment and management services in Finland. We are busy building our own entity in the country to provide you with best possible employment solutions for your employees.
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.
Employing in Finland
Finnish labor regulations are spelled out across several government statutes such as:
- The Labour Safety Act (1958)
- Annual Holidays Act (1973)
- The Hours of Work Act (1996)
- The Study Leave Act (1979), and,
- The Act on Equality Between Men and Women
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.
|Date||Holiday Name||Extra information|
|New Year’s Day|
|Second Easter Day|
|All Saints’ Day||Saturday between October 31 and November 6|
|St. Stephen’s Day|
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 instalments on or before the last working day of each calendar month, payable in arrears.
Competitive benefits package in Finland
Remote can help you provide a competitive and compliant benefits package for your employees in Finland. If you have questions or would like to offer a custom benefit, let us know and we can help.
Taxes in Finland
Learn how employment taxes affect your payroll and your employees’ paychecks in Finland.
- 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)
- 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
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.
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.
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.
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.
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.
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.
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.
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.