Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Finland

Your quick guide on talent and labor compliance norms in Finland
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Capital
Helsinki
Currency
Euro (EUR)
Languages
Finnish, Swedish, English
Payroll Frequency
Monthly
GDP per Capita
$48,300
Employer Tax
20% - 21.50%

Supplementary Guide for Employment and Expansion in Finland

Talent Overview

Finland has consistently ranked at the top position in the World Happiness Report since 2018. The Nordic country offers its people countless parental leaves, supports the unemployed, and free healthcare and education for all. Small and medium businesses employ a vast majority of the Finnish population. The country's main exports are paper, machinery, oil, and vehicles.

Major economic hubs:

Helsinki, Espoo, Tampere, Vantaa

Skills in demand :

Software engineers, Nursing professionals, medical practitioners, Educators.

Local Universities

The top local universities in Finland are listed below:

Helsingin yliopisto (University of Helsinki)

RANKING

Local : 1

World : 141

Aalto-yliopisto (Aalto University)

RANKING

Local : 2

World : 260

Tampereen yliopisto (Tampere University)

RANKING

Local: 3

World : 321

Jyväskylän yliopisto (University of Jyväskylä)

RANKING

Local : 4

World : 483

Oulun yliopisto (University of Oulu)

RANKING

Local : 5

World : 637

Salary Data

Some of the top jobs and their corresponding monthly salaries are as follows:

Job Description Average Salary (in Euro) Average Salary (in USD)
Accounting manager 6,980 EUR 7,347.94
Financial analyst 5,790 EUR 6,095.42
Office manager 4,150 EUR 4,368.9
Graphic designer 2,840 EUR 2,990.93
Business Development Manager 7,360 EUR 7,751.24
Developer/Programmer 4,470 EUR 4,707.61

Talent Sourcing Tips

Top Local Job Boards:

TipTop Job, Duunitori, Te Palvelut

Number of LinkedIn users:

1.50 million

Multiplier Recruitment Partner:

iXceed

Employing in Finland

Collective agreements form the basis of Finnish labor laws. All employees working in Finland, irrespective of their nationalities, are covered under Finland's labor and occupational safety legislation.  

Employee Contract

Finland's official languages are Finnish and Swedish. However, employment contracts may be in any language understood by the employee.

Probation period

The usual probationary period followed in Finland is from one to six months.

Public and Provincial Holidays

Date Name Type
1 Jan New Year's Day National holiday
6 Jan Epiphany National holiday
15 Apr Good Friday National holiday
18 Apr Easter Monday National holiday
1 May May Day National holiday
26 May Ascension Day National holiday
24 Jun Midsummer Eve De facto and Bank holiday
25 Jun Midsummer National holiday
5 Nov All Saints' Day National holiday
6 Dec Independence Day National holiday
24 Dec Christmas Eve De facto and Bank holiday
25 Dec Christmas Day National holiday
26 Dec Boxing Day National holiday

Employee Leaves

Type of leave Time Period Mandatory
Annual leave/Earned Leave 24 days Yes
Sick Leave 10 days Yes
Maternity Leave 18 weeks Yes

Payroll

Payroll Cycle

The employee must be paid monthly or bi-monthly per the collective agreement. 

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Minimum Wage

There is no statutory minimum wage followed in Finland.

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Overtime Pay

Daily overtime work pays 50% of the regular wage for the first two hours and 100% for the following hours. For weekly overtime work, the extra payment is 50%. Sunday work is paid double the regular wage.

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Health Examination Clause

Bonus

13th Month Pay

There is no specific legal provision for a 13th-month salary in Finland, but they are customary and are paid before the holidays.

Employee Benefits

  • ~The Finnish employees are entitled to the following benefits:
  • ~Holiday bonus
  • ~Maternity leaves
  • ~Paternity leave
  • ~Equity stock options
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Taxes

Employer Payroll Tax

Category Rate
Health Insurance 1.34%
Pension Insurance 17.40%
Unemployment Insurance 0.50% for first EUR 2,197,500 and 2.05% afterward
Group Life insurance 0.06%
Accident Insurance Premium 0.70%
Total 20% - 21.55%

Employee Payroll Tax

Category Rate
Pension Insurance 7.15% (If below 53 years) or 8.65%
Health Insurance 1.71%
Unemployment Insurance 1.50%
Total 10.26 % - 11.76%

Employee Income Tax

Income Tax on Income Tax on Extra Income
19,200 - 28,700 8 EUR 6%
28,700 - 47,300 578.00 EUR 17.25%
47,300 - 82,900 3,786.50 EUR 21.25%
82,900 and above 11,351.50 31.25%

Capital (investment) income is taxed at 30% and 34% rates.

VAT

A standard rate of 24% is followed in Finland.

Offboarding & Termination

Termination Process

Termination in Finland can be done on a mutual consent basis. An employer in Finland may terminate the employment contract of a regular employee for redundancy or any other reasons. An employee can terminate the employment contract without giving any reason to the employer. Upon completion of the employment, employees are entitled to a written certificate on request.

Notice Period

The notice period for employees during the probationary period is from 14 days to 30 days, while for permanent employees, it ranges from 14 days to 180 days.

Severance Pay

Employees in Finland are not entitled to severance pay unless expressed in the agreement.

Visa and Immigration

Nationals of the EU countries and nationals of countries that belong to the European Economic Area may work in Finland without a residence permit. Other nationals must have a residence permit and a work permit to work in Finland.

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