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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 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.
Finland offers strong statutory benefits and additional perks commonly provided by employers.
Mandatory benefits:
Common perks:
Leave Policies:
Note: Requirements vary based on sector agreements and age.
Finland uses progressive personal income tax alongside municipal tax, church tax (if applicable), and social contributions.
Employees pay:
Finland’s tax system funds extensive public services and social protections.
Note: Effective tax rate varies by municipality and income level.
Payroll Frequency: Monthly
Payroll Currency: EUR
Employers must:
Key employment rules in Finland come from:
Total Employment Cost: Usually 20–25% above gross salary (varies by age and insurance).
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Non-EU/EEA nationals typically require:
Processing usually takes several weeks to months.
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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:
PEO Services:
A Finland payroll calculator can estimate net pay, employer contributions, and effective tax rates based on gross salary.
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Experience a custom demo and get all your queries resolved by our experts.
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.