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Finland · EOR

Employer of Record in Finland

Hire Finnish employees legally without a Finnish entity. We handle employment contracts, payroll, TyEL pension registration and full compliance with Finland’s Employment Contracts Act - from day one.

  • businessNo Finnish entity required
  • boltEmployee live in 5-10 business days
  • savingsTyEL pension registered from day one
  • account_treeSector collective agreement (TES) compliance included
  • public50+ countries covered
account_treeBefore you hire

What you need to know before hiring in Finland

Finland pairs a strict statutory core - the Employment Contracts Act - with sector collective agreements that set the numbers. Both bind you.

description

Employment contracts

Finnish law defaults to indefinite employment contracts. A fixed-term contract is only valid where there is a specific, justified reason - a defined project or a substitute role.

Probation is capped at 6 months on indefinite contracts, or 50% of the contract length on fixed-term contracts. An unjustified fixed term is treated as indefinite from the start.

payments

No national minimum wage

Finland has no statutory minimum wage. Pay floors come from sector-specific collective agreements (työehtosopimus, TES), which are generally binding on employers in that sector.

The TES sets the floor, the pay scales and much of the benefit package before you have quoted anything - so identifying it is the first step, not a formality.

beach_access

Annual leave and holiday bonus

Statutory annual leave is 25 days for employees with under one year of service and 30 calendar days from one year onward, accrued over the holiday credit year.

A holiday bonus (lomaraha) of roughly 50% of normal holiday pay is common practice under collective agreements, paid before summer leave. Budget it in rather than treating it as discretionary.

healing

Sick pay and social insurance

Employer-paid sick pay applies once employment has lasted one month or more; Kela sickness allowance takes over thereafter.

Every Finnish employee must be registered for TyEL pension plus statutory accident, group life and unemployment insurance from day one. We hold those registrations as the employer of record.

calculateEmployer cost summary

What a Finnish employee actually costs

Finland’s employer burden is moderate by Nordic standards, but the pension component is the one that moves the number.

~21-25%Total employer contributions on top of gross salary
17.1%TyEL pension - employer average, age-banded
30 daysStatutory annual leave after one year of service
Payroll componentRate / details
Pension insurance (TyEL) Employer average 17.1%; age-banded. Employee share 7.15-8.65%
Unemployment insurance 0.31% up to €2.5M total payroll / 1.23% above - graded by the employer’s total wage bill
Health insurance (employer share) ~1.7% of gross salary
Accident & group life insurance ~0.5% average, sector-dependent
Annual leave (statutory) 25 days under one year of service; 30 calendar days from one year
Holiday bonus (lomaraha) ~50% of normal holiday pay - common collective-agreement practice, paid before summer leave
Sick pay Employer-paid once employment has lasted 1+ month; Kela sickness allowance thereafter
Minimum wage None in statute - pay floors are set by the applicable sector collective agreement (TES)

updateRates verified for the 2026 tax year. Figures are indicative - your quote is calculated on the actual salary and contract type.

balanceEnding employment

Termination in Finland

Finland does not mandate statutory severance for individual dismissals - the cost of exit sits in the notice period and in the grounds you can evidence.

scheduleNotice by service

Statutory employer notice runs from 14 days under one year of service up to 6 months at 12+ years.

fact_checkPerson-related grounds

Dismissal for reasons relating to the employee requires a documented, justifiable ground - warnings and process, not a judgement call.

groupsRedundancy

Financial or production-based dismissals trigger co-operation negotiation obligations for employers with 20+ employees.

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No statutory severance is not the same as a cheap exit

Finland has no statutory severance formula for individual dismissals, which reads as low exit cost. It is not. Notice stretches to six months with tenure, and collective agreements or the contract itself may add severance on top.

Model the exit cost at the point you make the offer, not at the point you want to make the exit.

EOR service fee
From €449/ employee / month

Charged on top of full employment costs - gross salary, TyEL pension and statutory insurances.

No entity setup. No Finnish payroll registration. Full employment costs are transparent from the first conversation.

help_outlineFAQs

Hiring in Finland - common questions

Can I hire in Finland without setting up a Finnish entity?

Yes. Under an EOR arrangement Dhi ADT is the legal employer in Finland, holding the employment contract, running payroll and carrying the TyEL pension and statutory insurance registrations. You direct the employee’s day-to-day work.

Typical time to a live employee is 5-10 business days once we have the role, salary and start date.

Finland has no minimum wage - so what do I have to pay?

Pay floors come from the sector collective agreement (TES) that applies to your activity, not from statute. The applicable TES sets minimum pay scales and often working-time, leave and bonus terms too.

We identify the applicable agreement before the contract is drafted, so the offer clears the correct floor the first time.

How much does a Finnish employee cost?

Budget roughly 21-25% on top of gross salary for employer contributions - TyEL pension, unemployment, health and accident insurance - before the EOR fee.

Add the holiday bonus (lomaraha) of around 50% of holiday pay where the collective agreement provides for it. It is the item most often missing from a first estimate.

What is TyEL and when does it start?

TyEL is Finland’s statutory earnings-related pension. The employer average is around 17.1% of gross, age-banded, with an employee share of 7.15-8.65% deducted from salary.

It applies from day one of employment. As employer of record we hold the TyEL registration and remit both shares.

What does it cost to end an employment in Finland?

There is no statutory severance for individual dismissals, but notice runs from 14 days under one year of service to six months at 12+ years, and that notice is paid.

Dismissal also needs a documented ground - person-related grounds require evidence and process, and redundancies trigger co-operation negotiations at 20+ employees.

Can you handle fixed-term and project hires?

Yes, where the fixed term is genuinely justified - a defined project or a substitute role. Finnish law treats an unjustified fixed term as indefinite from the start, so we confirm the justification before issuing the contract rather than after.

eventGet started

Ready to hire in Finland?

Book a 15-minute call. We’ll confirm your structure, timeline and cost - before you commit to anything.

  • check_circleApplicable collective agreement (TES) identified
  • check_circleA costed breakdown including TyEL and holiday bonus
  • check_circleNotice and exit costs modelled before the offer
  • check_circleNo upfront cost, no obligation

Custom cost estimate

Five inputs. One business day. A real spreadsheet.

1 business day CSM-scoped reply