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Currency

Euro (EUR)

Languages

Finnish, Swedish

Minimum wage

No national minimum (set by collective agreements)

Employment cost

20–25% employer contributions

Working hours

Up to 40 hours/week

TAX

Progressive + municipal taxes

Probation period

Up to 6 months

Paid leave days

24–30 days/year

Hiring in Finland

Hiring in Finland requires following both national employment laws and sector-specific collective agreements (TES). These agreements often define salaries, working hours, overtime, and benefits, so employers must identify the correct agreement before hiring.

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Note: Always check collective agreements as they override many general rules.

Employment Contract

Employment in Finland may be indefinite-term (most common), fixed-term (must be justified), part-time, or temporary. All contracts must be in writing and specify salary, working time, duties, notice terms, and which collective agreement applies.

Notice Periods:

Typically 14 days to 6 months for employers, depending on tenure; 14 days to over 1 month for employees.

Termination: Must be based on proper and weighty reason—economic, redundancy, performance, or serious misconduct. Unjustified dismissal can result in compensation.

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Note: Always confirm the correct collective agreement before drafting contracts.

Employee Benefits

Finland offers strong statutory benefits and additional perks commonly provided by employers.

Mandatory benefits:

  • Paid annual leave under Holiday Act
  • Public holidays
  • Sickness benefits (employer + Kela)
  • Maternity, paternity, and parental benefits
  • Unemployment insurance
  • Pension (earnings-related)
  • Occupational accident insurance

Common perks:

  • Supplemental health services
  • Lunch vouchers
  • Sports & cultural benefits
  • Company car or transport support

Leave Policies:

  • 24–30 days annual leave (accrual 2–2.5 days/month)
  • Employer-paid sick leave initially; Kela pays afterward
  • Generous parental leave options
  • 12–15 public holidays
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Note: Requirements vary based on sector agreements and age.

Taxes in Finland

Finland uses progressive personal income tax alongside municipal tax, church tax (if applicable), and social contributions.

Employees pay:

  • State tax
  • Municipal tax
  • Social contributions
  • Church tax (optional)

Finland’s tax system funds extensive public services and social protections.

Note: Effective tax rate varies by municipality and income level.

Payroll in Finland

Payroll Frequency: Monthly

Payroll Currency: EUR

Employers must:

  • Withhold tax based on employee tax card
  • Withhold social contributions
  • Remit all payments to authorities on deadlines
  • File reports via the Incomes Register
About payroll

Work Permits & Visas for Finland

Non-EU/EEA nationals typically require:

  • Residence permit for employment
  • Specialist permit (for highly skilled roles)

Processing usually takes several weeks to months.

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EOR & PEO Services in Finland

EOR services allow companies to hire in Finland without setting up a local entity. The EOR becomes the legal employer and manages compliance.

An EOR in Finland helps you:

  • Hire employees without opening a Finnish entity
  • Issue compliant, TES-aligned contracts
  • Run payroll, tax withholding, and reporting
  • Remit statutory contributions such as TyEL
  • Manage benefits and occupational healthcare
  • Ensure compliance for onboarding → termination

PEO Services:

  • HR administration
  • Payroll & benefits management
  • TES compliance
  • Employee lifecycle management
EOR in Finland

Payroll Calculator

A Finland payroll calculator can estimate net pay, employer contributions, and effective tax rates based on gross salary.

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COUNTRY TAXES NETPAY
€52,600 €430,820
€52,600 €430,820

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Frequently Asked Questions

By acting as the legal employer, taking care of contracts, payroll, and compliance while you direct day-to-day work.

It provides strong employee protections but is predictable when you follow law + collective agreements (TES).

Monthly in EUR, with tax and social contributions withheld at source.

Use an EOR/PEO to hire without creating a Finnish entity, or establish your own company and hire directly.

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