The Republic of Finland

Finland offers a robust business environment characterized by a highly educated workforce, a transparent legal system, and a strong social welfare framework. Understanding the local payroll, taxation, and employment regulations is crucial for businesses operating or planning to operate in the country.
Contractor Management
Payroll
Currency
Euro (EUR)
Payroll Frequency
Monthly
Employer Taxes
18.53% to 20.38%

Overview

Population
~ 5.5 million
Language
Finnish
Capital
Helsinki
Currency
Euro (EUR)
Country code
+358
Min wage
Finland does not have a national minimum wage.
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
40 hours per week

Payroll

Salaried Employees
Time-Based Employees
13th Salary

Not mandatory; subject to employer discretion

Avg employer tax

18.53% to 20.38%

Tax Breakdown

Personal Income Tax (PIT):

€0 – €21,200
12.64%
€21,200 – €31,500
19%
€31,500 – €52,100
30.25%
€52,100 – €88,200
34%
€88,200 – €150,000
41.75%
Above €150,000
44.25%

Corporate Income Tax (CIT):

Standard Rate
18% (reduced from 20% in April 2025)

Social Security Contributions:

Employee Contributions:

Pension Insurance
7.15% (for employees under 53 or over 62); 8.65% (for employees between 53 and 62)
Unemployment Insurance
1.5%
Health Insurance
1.71%

Employer Contributions:

Pension Insurance
7.15%
Unemployment Insurance
0.20% for salaries up to €2,455,500; 0.80% above that
Health Insurance
1.35%

VAT

VAT

24%

Tax Calculation for Finland
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Employer cost
Total monthly cost of employment
Gross monthly salary costs
Estimated taxes and contributions
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
Gross yearly salary costs
Estimated taxes and contributions
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Finland typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the Finnish Tax Administration and the Finnish Centre for Pensions

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Finland
When drafting an employment contract for employees in Finland, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • Paid by the employer for the first 10 days; thereafter, by the Finnish social insurance institution (KELA)

Maternity leave
  • Approximately 105 working days; paid by KELA
Paternity leave
  • Approximately 54 working days; paid by KELA

Parental Leave:

  • Unpaid; duration varies

Annual Leave
  • Minimum of 30 days per year
15 Public holidays in Finland

Note: Some holidays may be observed on different dates or may be extended, depending on regional regulations.

1st
New Year's Day
6th
Epiphany
18th
Good Friday
20th
Easter Sunday
21st
Easter Monday
1st
May Day
29th
Ascension Day
8th
Whit Sunday
20th
Midsummer Eve
21th
Midsummer Day
1st
All Saints' Day
6th
Independence Day
24th
Christmas Eve
25th
Christmas Day
26th
Boxing Day
  • 1 Jan: New Year's Day
  • 6 Jan: Epiphany
  • 15 Apr: Good Friday
  • 17 Apr: Easter Sunday
  • 18 Apr: Easter Monday
  • 1 May: May Day
  • 26 May: Ascension Day
  • 5 Jun: Whit Sunday
  • 24 Jun: Midsummer's Eve
  • 25 Jun: Midsummer Day
  • 5 Nov: All Saints' Day
  • 6 Dec: Independence Day
  • 24 Dec: Christmas Eve
  • 25 Dec: Christmas Day
  • 26 Dec: 2nd Day of Christmas

Termination Process

Notice Period

  • Employee-Initiated: 14 days to 6 months, depending on length of service
  • Employer-Initiated: 14 days to 6 months, depending on length of service

Severance Pay

Not mandatory; subject to employer discretion

Termination During Probation

Either party can terminate with appropriate notice

Probation Period

  • Maximum Duration: 6 months
  • Extension: Permitted if agreed upon by both parties
  • Termination During Probation: Either party can terminate with appropriate notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in Finland
with RemotePass

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Finland.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

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Hiring in Finland | Payroll, Tax & Employment Guide

Finland's emphasis on work-life balance and employee well-being makes retention easier than in many European markets. Add English proficiency and a highly educated workforce, and you've got a compelling hiring destination. 

RemotePass makes hiring in Finland simple. We handle compliance, contracts, and payroll. You focus on building your business.

Key Takeaways For Hiring In Finland

  • Termination without cause is not permitted. Employers may only terminate for “proper and weighty reasons” under Finnish law.
  • Foreign hires are supported through Finland’s well-structured residence and work permit system.
  • Finland has no statutory minimum wage. The pay is governed by sector-specific collective agreements.
  • Standard working time is 37.5 to 40 hours per week, depending on the agreement.

Quick Facts For Hiring In Finland

Continent
Europe
Capital
Helsinki
Currency
Euro (EUR, €)
Language
Finnish, Swedish
Payroll Cycle
Monthly
Pay Date
Last working day of the month

Finland Employment Contract Overview

Contract Type
Fixed-term / Open-ended (Fixed-term contracts must have a justified reason e.g. temporary work, otherwise, it may be deemed indefinite.)
Local Language Required?
No
Bilingual?
No
Probation Period
Six months maximum, regulated by collective agreements and employment contracts
Probation for fixed-term contracts is limited to half the contract's duration, but it can be a maximum of six months
Minimum Paid Time Off
24 days annually. After one year of service, accrual increases to 2.5 days per month
Public Holidays
12 Public holidays
Notice Period
Minimum 14 days for up to one year service, up to 6 months for longer service

What Do You Need To Include In A Finnish Employment Contract?

Finnish labor law requires employment contracts to set out all major terms from the start. Below are the mandatory details that every compliant Finnish employment contract should include.

Employee Information

  • Full name
  • ID number
  • Role / Job title
  • Start date
  • Contract duration
  • Working hours
  • Probation and notice conditions
  • Termination provisions
  • Compensation details

How Does Payroll and Taxation Work in Finland?

Finland uses a consistent monthly payroll system supported by collective agreements and clear social security rules. Below is what you need to know about salary payment, hours, and required contributions.

Payroll Setup

Salary currency

Euro (EUR, €)

Minimum Wage

No statutory minimum. Minimum wage is set by collective agreements and varies by sector (typically €11– €14/hour).

Hours per Week

37.5 – 40 hours/week

Payroll Frequency

Monthly

Weekdays

Monday through Friday

Mandatory Bonuses

Not required

Gross Salary Structure

Gross salary does not follow a standardized structure in Finland.

What Payroll Taxes do Employers Pay in Finland?

Employer cost % (estimate):


Employer Cost %

Contributions Breakdown

Pension Insurance (TyEL):

16.95%

Health Insurance:

1.53%

Unemployment Insurance:

0.50% – 3.10% Rate depends on total annual payroll.

Accident Insurance:

0.70%

What Payroll Taxes do Employees Pay in Finland?

Individual Income Tax

Finland applies national progressive income tax rates on annual taxable income (after deductions). These rates apply alongside municipal tax, church tax (if applicable), and other local contributions.

  • Up to €19,200: 0%

  • €19,201 to €29,700: 6%

  • €29,701 to €49,300: 17.25%

  • Over €49,300: 21.25%

Social Contributions


Pension Insurance (TyEL):

7.15%

Health Insurance:

1.53%

Training (Professional Development):

0.10%

Unemployment Insurance:

1.30%

Hiring cost calculator 

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Employer cost
Total monthly cost of employment
Gross monthly salary costs
Estimated taxes and contributions
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
Gross yearly salary costs
Estimated taxes and contributions
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation

Mandatory Employee Benefits In Finland

Employment of expats is supported in Finland.

Benefits Provider Mandatory? Notes
Health Insurance Government

Payroll Contributions

Universal healthcare is provided through the public system, funded by taxes and contributions.

Pension/Social Security Government

Payroll Contributions

Earnings-related pensions + national pension scheme.

Leave And Holiday Entitlement In Finland

Annual leave

Employees earn:

  • Four weeks (twenty-four working days) of annual leave if they have worked less than one year, and

  • Five weeks (thirty working days) if they have worked more than one year.

Public holidays

Finland observes 12 public holidays, and employees are entitled to paid time off on these days:

  • New Year’s Day

  • Epiphany

  • Good Friday

  • Easter Sunday

  • Easter Monday

  • May Day (Labour Day)

  • Ascension Day

  • Pentecost / Whitsunday

  • All Saints’ Day (Saturday, 1 November 2025)

  • Independence Day

  • Christmas Day

  • Boxing Day (St. Stephen’s Day)

  • Sick Leave

The employer pays for the first nine days of sick leave. From day ten onward, Kela pays a sickness allowance, usually about 70% of salary for a maximum of 300 working days. A medical certificate is required after the first day of absence.

Maternity Leave

Finland now uses a gender-neutral family leave model.

  • Each parent receives one hundred sixty working days of parental leave allowance.

  • Additionally, the pregnant parent is entitled to forty working days of pregnancy leave before the expected due date.

Paternity Leave

Each parent receives 160 working days of parental leave allowance under the current family leave system.

Other Types of Leave

  • Care Leave: Up to four days per year of unpaid leave to care for a sick family member.

  • Study Leave: Unpaid leave for educational purposes, often governed by collective agreements.

  • Military Service Leave: Time off for conscription or reservist training. This leave is legally protected, and compensation may apply.

  • Leave for Public Duties: Time off for official duties (such as jury duty or political office). This leave is usually paid and legally protected.

Termination And Offboarding in Finland

Whether an employee resigns or an employer initiates the separation, Finland expects employers to manage offboarding with fairness, transparency, and proper documentation. This section breaks down exactly how to handle each scenario the right way.

Type Possible?
Termination for Cause (poor performance, misconduct, etc.) Yes
Termination without Cause Not possible.
Mutual Termination Agreement (MTA) Yes
Redundancy Not possible under the EoR setup.

Employee Resignations

Employee
Resignations

 Termination with Cause

Termination
with Cause

Termination without Cause

Termination
without Cause

Mutual Termination Agreement

Mutual Termination
Agreement

 Fixed Term Contract

Fixed Term
Contract

Finland Employee Resignation

Notice

Form

While the law does not require written resignation, it is strongly recommended to give notice in writing to avoid disputes. A written resignation can be delivered personally, by mail, or electronically.

Notice period

  • An employee may end their employment at any time without needing to provide a reason. However, unless a collective agreement or individual contract specifies otherwise, the following notice periods apply upon resignation:

    • 14 days for employment lasting up to five years

    • One month for employment exceeding five years

  • Failure to provide proper notice may result in the loss of compensation.

Payment in lieu of notice or notice waiver

If an employee resigns, they are generally expected to work through the notice period. However, the employer can waive this and release the employee from the duty to work. In that case, the employer must still pay full wages and other contractual benefits for the notice period. This must be mutually agreed upon, or it must be initiated by the employer. There is no general obligation for the employer to offer payment in lieu unless otherwise provided in contract or collective agreement.

End-of-Service Benefits

Severance/Gratuity

There is no statutory severance pay or gratuity when an employee resigns voluntarily.

Other Benefits

  • All accrued but unused annual holiday must be compensated with holiday pay.

  • All unpaid salary, bonuses (if contractually due), and other earned compensation must be paid by the agreed salary payment schedule or by the last working day.

  • Delay in final payment can entitle the employee to compensation for late payment as per employment law.

Termination Documentation

Written resignation letter

Employer Termination With Cause in Finland

Acceptable grounds

  • The employer may terminate for “proper and weighty reason(s)” related to the employee (personal grounds) or for financial/production‐related (collective) grounds.

    • Personal grounds include serious or repeated breach of contractual duties, gross negligence, misconduct (e.g. theft, breach of confidentiality, misuse of intoxicants, refusal of tasks), serious incapacity to perform duties.

    • Financial/production grounds include reorganizations, diminished work requiring reductions (not possible under the EOR setup).

  • Cancellation (i.e. termination without notice) is only allowed in very serious cases (“extremely weighty cause”), where it is unreasonable to require the employer to continue employment even through the notice period.

Notice

Form

Termination by the employer must be delivered in writing.

Notice period

For terminations with notice (i.e. not cancellation), the employer must respect statutory notice periods (unless contract or collective agreement gives longer). An employer may dismiss an employee without notice if the employee commits a serious breach of the employment contract. This immediate termination must occur within two weeks of the employer learning about the violation.

Payment in lieu of notice or notice waiver

The employer may, if agreed, waive the requirement that the employee works through the notice period, but must still pay for it as if the employee had worked. For immediate dismissal (cancellation), no notice period is required, so payment in lieu generally does not apply because the notice period is skipped due to severity of the cause.

End-of-Service Benefits

Severance

There is no general statutory severance or gratuity due just because of cause termination.

Other Benefits

  • Accrued salary

  • Holiday pay

  • Unpaid bonuses or allowances due

  • Final pay

Termination Documentation

The employer must provide the employee, on request, with a written statement of the grounds for termination and the end date of employment. The documentation should show the reason(s) for termination.

Employer Termination Without Cause in Finland

This termination type isn't possible under the Employer of Record setup in Finland due to local labor law restrictions. For compliant termination options, see:

  • Mutual Termination Agreements
  • Employee Resignation
  • Fixed-term Contract Expiry

If you need termination without cause, you'll need to establish your own Finland entity.

Mutual Termination Agreements in Finland

In Finland, mutual termination agreements are a common and legally recognized method for ending an employment relationship. These agreements are typically negotiated between the employer and employee and must comply with the Finnish Employment Contracts Act and any applicable collective agreements.

Notice

Form

The mutual termination agreement should be documented in writing and signed by both parties.

Notice period

Both parties decide the notice period in a mutual termination agreement. They can set it shorter or longer than the statutory period based on what they negotiate.

Waiver of notice

If the employer and employee agree to waive the notice period, the employer is typically required to compensate the employee for the equivalent of the notice period's wages.

End-of-Service Benefits

Severance

Finnish law does not mandate severance pay upon termination. However, some collective agreements or individual employment contracts may provide for severance or gratuity payments.

Other Benefits

  • Unused annual leave

  • Final salary

Termination Documentation

Upon mutual termination, the employer must provide the employee with:

  • A written statement specifying the end date of employment.

  • The reasons for termination, if requested by the employee.

This documentation is essential for the employee's records and may be required for unemployment benefits or future employment opportunities.

Offboarding Process for the End of Fixed-term Contracts in Finland

If the Fixed-Term Contract Ends Normally

Notice

  • There is no statutory requirement to give notice when a fixed-term contract expires naturally on its agreed end date. The contract ends automatically.
  • However, if the contract includes a clause that requires notice before the end date, that clause applies.

End-of-Service Benefits

Severance/Gratuity

No statutory severance or gratuity is payable when a fixed-term contract ends normally.

Other Benefits

  • The employee is entitled to payment for any accrued but unused annual leave.
  • All wages, bonuses, and other earned benefits must be paid up to the contract’s end date.
  • If the fixed-term contract has lasted at least one year, the employee may be entitled to unemployment benefits, provided they meet other criteria.

If the Employer Terminates Early

Notice

  • Early termination of a fixed-term contract is allowed only when the contract or collective agreement explicitly permits it, or when the employee seriously breaches their contractual obligations.
  • If early termination is permitted, the employer must give the notice period specified in the contract or, if none is specified, a reasonable notice period based on the circumstances.
  • If the contract or law does not permit early termination, the employer risks breaching the contract and may be liable for damages.

End-of-Service Benefits

Severance/Gratuity

No statutory severance unless specified in contract or collective agreement.

Other Benefits

  • The employee must be paid for all work done and accrued benefits up to the termination date.
  • Compensation for unused annual leave must be paid.
  • If early termination is due to serious employee fault, benefits may be adjusted accordingly.

Final Payment Timing & Immigration and Visa Compliance in Finland

Final Payment Deadline

The employer must pay all final wages, including accrued holiday pay and any other outstanding compensation, on the employee’s last working day or as soon as possible after it. Any delay may violate employment law and expose the employer to claims or penalties.

Penalty

If the employer delays the final payment without a valid reason, the employee can claim compensation for the delay. The Finnish Employment Contracts Act also allows employees to seek damages when wages are paid late. Repeated or intentional delays may prompt enforcement action from labor authorities and result in fines.

Visa and Immigration Compliance

  • If the employee is a foreign national working in Finland, the employer must actively maintain compliance with all residence permit and work authorization requirements throughout the employment relationship and at the point of termination
  • When employment ends, the employer should notify the relevant immigration authorities if required, especially when the employee’s right to stay in Finland is directly linked to their job.
  • The employee may need to apply for a new residence permit or change their status after termination. The employer should provide any documents needed for this process, such as proof of employment and the termination date. While the employee is responsible for keeping their status valid, the employer should support compliance to avoid potential penalties.

Key Elements of an Employment Contract in Finland
When drafting an employment contract for employees in Finland, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Simplifying Hiring in Finland With RemotePass

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Finland.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

FAQs About Hiring in Finland

Got Questions? Find Answers Here

Is there a minimum wage in Finland?

No. Finland has no statutory minimum wage. Pay is governed by sector-specific collective agreements, which typically set minimum rates between €11-€14 per hour depending on the industry.

Can I terminate an employee without cause in Finland?

No. Termination without cause isn't permitted. Employers may only terminate for "proper and weighty reasons" under Finnish law, such as serious misconduct, repeated breach of duties, or financial/production-related grounds (like reorganization).

How much notice is required for termination?

For employees, notice periods are:

  • Fourteen days for employment up to five years
  • One month for employment over five years

The same minimums apply to employer-initiated terminations, though contracts or collective agreements may require longer notice.

How does parental leave work in Finland?

Finland uses a gender-neutral family leave model. Each parent receives one hundred sixty working days of parental leave allowance. Additionally, the pregnant parent gets forty working days of pregnancy leave before the expected due date. Leave is paid by Social Security.

How is sick leave paid?

The employer pays for the first nine days of sick leave. From day ten onward, Kela (Social Insurance Institution) pays sickness allowance at about 70% of salary for a maximum of three hundred working days. A medical certificate is required after the first day of absence.

How much annual leave do employees get?

Employees earn:

  • Four weeks (twenty-four working days) if they've worked less than one year
  • Five weeks (thirty working days) if they've worked more than one year

Is severance pay mandatory in Finland?

No. Finnish law doesn't mandate severance pay upon termination. However, some collective agreements or individual employment contracts may include severance provisions.

When must I pay final wages after termination?

All final wages, including accrued holiday pay and outstanding compensation, must be paid on the employee's last working day or as soon as possible after. Delays can result in compensation claims and potential fines from labor authorities.

Let’s Chat

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The Republic of Finland

Finland offers a robust business environment characterized by a highly educated workforce, a transparent legal system, and a strong social welfare framework. Understanding the local payroll, taxation, and employment regulations is crucial for businesses operating or planning to operate in the country.
Contractor Management
Payroll
العملة
Euro (EUR)
تردد الرواتب
Monthly
ضرائب أصحاب العمل
18.53% to 20.38%

نظرة عامة

التركيبة السكانية
~ 5.5 million
اللغة
Finnish
العاصمة
Helsinki
العملة
Euro (EUR)
رمز الاتصال الدولي
+358
الحد الأدنى للأجور
Finland does not have a national minimum wage.
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
40 hours per week

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني
13th Salary

Not mandatory; subject to employer discretion

متوسط ​​ضريبة صاحب العمل

18.53% to 20.38%

تحصيل الضرائب

Personal Income Tax (PIT):

€0 – €21,200
12.64%
€21,200 – €31,500
19%
€31,500 – €52,100
30.25%
€52,100 – €88,200
34%
€88,200 – €150,000
41.75%
Above €150,000
44.25%

Corporate Income Tax (CIT):

Standard Rate
18% (reduced from 20% in April 2025)

Social Security Contributions:

Employee Contributions:

Pension Insurance
7.15% (for employees under 53 or over 62); 8.65% (for employees between 53 and 62)
Unemployment Insurance
1.5%
Health Insurance
1.71%

Employer Contributions:

Pension Insurance
7.15%
Unemployment Insurance
0.20% for salaries up to €2,455,500; 0.80% above that
Health Insurance
1.35%

ضريبة القيمة المضافة

ضريبة القيمة المضافة

24%

حساب الضريبة في The Republic of Finland
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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
إجمالي تكاليف الراتب الشهري
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
إجمالي تكاليف الرواتب السنوية
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في The Republic of Finland عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the Finnish Tax Administration and the Finnish Centre for Pensions

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في The Republic of Finland
عند إعداد عقد عمل للموظفين في The Republic of Finland يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • Paid by the employer for the first 10 days; thereafter, by the Finnish social insurance institution (KELA)

إجازة الأمومة
  • Approximately 105 working days; paid by KELA
إجازة الأبوة
  • Approximately 54 working days; paid by KELA

Parental Leave:

  • Unpaid; duration varies

الإجازة السنوية
  • Minimum of 30 days per year
15 عطلات رسمية في The Republic of Finland

Note: Some holidays may be observed on different dates or may be extended, depending on regional regulations.

1st
New Year's Day
6th
Epiphany
18th
Good Friday
20th
Easter Sunday
21st
Easter Monday
1st
May Day
29th
Ascension Day
8th
Whit Sunday
20th
Midsummer Eve
21th
Midsummer Day
1st
All Saints' Day
6th
Independence Day
24th
Christmas Eve
25th
Christmas Day
26th
Boxing Day
  • 1 Jan: New Year's Day
  • 6 Jan: Epiphany
  • 15 Apr: Good Friday
  • 17 Apr: Easter Sunday
  • 18 Apr: Easter Monday
  • 1 May: May Day
  • 26 May: Ascension Day
  • 5 Jun: Whit Sunday
  • 24 Jun: Midsummer's Eve
  • 25 Jun: Midsummer Day
  • 5 Nov: All Saints' Day
  • 6 Dec: Independence Day
  • 24 Dec: Christmas Eve
  • 25 Dec: Christmas Day
  • 26 Dec: 2nd Day of Christmas

عملية إنهاء العقود

Notice Period

  • Employee-Initiated: 14 days to 6 months, depending on length of service
  • Employer-Initiated: 14 days to 6 months, depending on length of service

Severance Pay

Not mandatory; subject to employer discretion

Termination During Probation

Either party can terminate with appropriate notice

Probation Period

  • Maximum Duration: 6 months
  • Extension: Permitted if agreed upon by both parties
  • Termination During Probation: Either party can terminate with appropriate notice

Personal Details

Name, contact information, and role of the employee.

نمو سوق العمل عن بُعد _  

تحديات التوظيف عن بُعد في  _

تبسيط التوظيف عن بُعد في _ مع ريموت باس

نمِّ فريقك في The Republic of Finland
مع ريموت باس

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك The Republic of Finland.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

لا حاجة لبطاقة ائتمان

يمكنك الإلغاء في أي وقت

Hiring in Finland | Payroll, Tax & Employment Guide

Finland's emphasis on work-life balance and employee well-being makes retention easier than in many European markets. Add English proficiency and a highly educated workforce, and you've got a compelling hiring destination. 

RemotePass makes hiring in Finland simple. We handle compliance, contracts, and payroll. You focus on building your business.

Key Takeaways For Hiring In Finland

  • Termination without cause is not permitted. Employers may only terminate for “proper and weighty reasons” under Finnish law.
  • Foreign hires are supported through Finland’s well-structured residence and work permit system.
  • Finland has no statutory minimum wage. The pay is governed by sector-specific collective agreements.
  • Standard working time is 37.5 to 40 hours per week, depending on the agreement.

Quick Facts For Hiring In Finland

Continent
Europe
Capital
Helsinki
Currency
Euro (EUR, €)
Language
Finnish, Swedish
Payroll Cycle
Monthly
Pay Date
Last working day of the month

Finland Employment Contract Overview

Contract Type
Fixed-term / Open-ended (Fixed-term contracts must have a justified reason e.g. temporary work, otherwise, it may be deemed indefinite.)
Local Language Required?
No
Bilingual?
No
Probation Period
Six months maximum, regulated by collective agreements and employment contracts
Probation for fixed-term contracts is limited to half the contract's duration, but it can be a maximum of six months
Minimum Paid Time Off
24 days annually. After one year of service, accrual increases to 2.5 days per month
Public Holidays
12 Public holidays
Notice Period
Minimum 14 days for up to one year service, up to 6 months for longer service

What Do You Need To Include In A Finnish Employment Contract?

Finnish labor law requires employment contracts to set out all major terms from the start. Below are the mandatory details that every compliant Finnish employment contract should include.

Employee Information

  • Full name
  • ID number
  • Role / Job title
  • Start date
  • Contract duration
  • Working hours
  • Probation and notice conditions
  • Termination provisions
  • Compensation details

How Does Payroll and Taxation Work in Finland?

Finland uses a consistent monthly payroll system supported by collective agreements and clear social security rules. Below is what you need to know about salary payment, hours, and required contributions.

Payroll Setup

Salary currency

Euro (EUR, €)

Minimum Wage

No statutory minimum. Minimum wage is set by collective agreements and varies by sector (typically €11– €14/hour).

Hours per Week

37.5 – 40 hours/week

Payroll Frequency

Monthly

Weekdays

Monday through Friday

Mandatory Bonuses

Not required

Gross Salary Structure

Gross salary does not follow a standardized structure in Finland.

What Payroll Taxes do Employers Pay in Finland?

Employer cost % (estimate):


Employer Cost %

Contributions Breakdown

Pension Insurance (TyEL):

16.95%

Health Insurance:

1.53%

Unemployment Insurance:

0.50% – 3.10% Rate depends on total annual payroll.

Accident Insurance:

0.70%

What Payroll Taxes do Employees Pay in Finland?

Individual Income Tax

Finland applies national progressive income tax rates on annual taxable income (after deductions). These rates apply alongside municipal tax, church tax (if applicable), and other local contributions.

  • Up to €19,200: 0%

  • €19,201 to €29,700: 6%

  • €29,701 to €49,300: 17.25%

  • Over €49,300: 21.25%

Social Contributions


Pension Insurance (TyEL):

7.15%

Health Insurance:

1.53%

Training (Professional Development):

0.10%

Unemployment Insurance:

1.30%

حاسبة تكلفة التوظيف

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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
إجمالي تكاليف الراتب الشهري
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
إجمالي تكاليف الرواتب السنوية
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي

Mandatory Employee Benefits In Finland

Employment of expats is supported in Finland.

Benefits Provider Mandatory? Notes
Health Insurance Government

Payroll Contributions

Universal healthcare is provided through the public system, funded by taxes and contributions.

Pension/Social Security Government

Payroll Contributions

Earnings-related pensions + national pension scheme.

Leave And Holiday Entitlement In Finland

Annual leave

Employees earn:

  • Four weeks (twenty-four working days) of annual leave if they have worked less than one year, and

  • Five weeks (thirty working days) if they have worked more than one year.

Public holidays

Finland observes 12 public holidays, and employees are entitled to paid time off on these days:

  • New Year’s Day

  • Epiphany

  • Good Friday

  • Easter Sunday

  • Easter Monday

  • May Day (Labour Day)

  • Ascension Day

  • Pentecost / Whitsunday

  • All Saints’ Day (Saturday, 1 November 2025)

  • Independence Day

  • Christmas Day

  • Boxing Day (St. Stephen’s Day)

  • Sick Leave

The employer pays for the first nine days of sick leave. From day ten onward, Kela pays a sickness allowance, usually about 70% of salary for a maximum of 300 working days. A medical certificate is required after the first day of absence.

Maternity Leave

Finland now uses a gender-neutral family leave model.

  • Each parent receives one hundred sixty working days of parental leave allowance.

  • Additionally, the pregnant parent is entitled to forty working days of pregnancy leave before the expected due date.

Paternity Leave

Each parent receives 160 working days of parental leave allowance under the current family leave system.

Other Types of Leave

  • Care Leave: Up to four days per year of unpaid leave to care for a sick family member.

  • Study Leave: Unpaid leave for educational purposes, often governed by collective agreements.

  • Military Service Leave: Time off for conscription or reservist training. This leave is legally protected, and compensation may apply.

  • Leave for Public Duties: Time off for official duties (such as jury duty or political office). This leave is usually paid and legally protected.

Termination And Offboarding in Finland

Whether an employee resigns or an employer initiates the separation, Finland expects employers to manage offboarding with fairness, transparency, and proper documentation. This section breaks down exactly how to handle each scenario the right way.

Type Possible?
Termination for Cause (poor performance, misconduct, etc.) Yes
Termination without Cause Not possible.
Mutual Termination Agreement (MTA) Yes
Redundancy Not possible under the EoR setup.

Employee Resignations

Employee
Resignations

 Termination with Cause

Termination
with Cause

Termination without Cause

Termination
without Cause

Mutual Termination Agreement

Mutual Termination
Agreement

 Fixed Term Contract

Fixed Term
Contract

Finland Employee Resignation

Notice

Form

While the law does not require written resignation, it is strongly recommended to give notice in writing to avoid disputes. A written resignation can be delivered personally, by mail, or electronically.

Notice period

  • An employee may end their employment at any time without needing to provide a reason. However, unless a collective agreement or individual contract specifies otherwise, the following notice periods apply upon resignation:

    • 14 days for employment lasting up to five years

    • One month for employment exceeding five years

  • Failure to provide proper notice may result in the loss of compensation.

Payment in lieu of notice or notice waiver

If an employee resigns, they are generally expected to work through the notice period. However, the employer can waive this and release the employee from the duty to work. In that case, the employer must still pay full wages and other contractual benefits for the notice period. This must be mutually agreed upon, or it must be initiated by the employer. There is no general obligation for the employer to offer payment in lieu unless otherwise provided in contract or collective agreement.

End-of-Service Benefits

Severance/Gratuity

There is no statutory severance pay or gratuity when an employee resigns voluntarily.

Other Benefits

  • All accrued but unused annual holiday must be compensated with holiday pay.

  • All unpaid salary, bonuses (if contractually due), and other earned compensation must be paid by the agreed salary payment schedule or by the last working day.

  • Delay in final payment can entitle the employee to compensation for late payment as per employment law.

Termination Documentation

Written resignation letter

Employer Termination With Cause in Finland

Acceptable grounds

  • The employer may terminate for “proper and weighty reason(s)” related to the employee (personal grounds) or for financial/production‐related (collective) grounds.

    • Personal grounds include serious or repeated breach of contractual duties, gross negligence, misconduct (e.g. theft, breach of confidentiality, misuse of intoxicants, refusal of tasks), serious incapacity to perform duties.

    • Financial/production grounds include reorganizations, diminished work requiring reductions (not possible under the EOR setup).

  • Cancellation (i.e. termination without notice) is only allowed in very serious cases (“extremely weighty cause”), where it is unreasonable to require the employer to continue employment even through the notice period.

Notice

Form

Termination by the employer must be delivered in writing.

Notice period

For terminations with notice (i.e. not cancellation), the employer must respect statutory notice periods (unless contract or collective agreement gives longer). An employer may dismiss an employee without notice if the employee commits a serious breach of the employment contract. This immediate termination must occur within two weeks of the employer learning about the violation.

Payment in lieu of notice or notice waiver

The employer may, if agreed, waive the requirement that the employee works through the notice period, but must still pay for it as if the employee had worked. For immediate dismissal (cancellation), no notice period is required, so payment in lieu generally does not apply because the notice period is skipped due to severity of the cause.

End-of-Service Benefits

Severance

There is no general statutory severance or gratuity due just because of cause termination.

Other Benefits

  • Accrued salary

  • Holiday pay

  • Unpaid bonuses or allowances due

  • Final pay

Termination Documentation

The employer must provide the employee, on request, with a written statement of the grounds for termination and the end date of employment. The documentation should show the reason(s) for termination.

Employer Termination Without Cause in Finland

This termination type isn't possible under the Employer of Record setup in Finland due to local labor law restrictions. For compliant termination options, see:

  • Mutual Termination Agreements
  • Employee Resignation
  • Fixed-term Contract Expiry

If you need termination without cause, you'll need to establish your own Finland entity.

Mutual Termination Agreements in Finland

In Finland, mutual termination agreements are a common and legally recognized method for ending an employment relationship. These agreements are typically negotiated between the employer and employee and must comply with the Finnish Employment Contracts Act and any applicable collective agreements.

Notice

Form

The mutual termination agreement should be documented in writing and signed by both parties.

Notice period

Both parties decide the notice period in a mutual termination agreement. They can set it shorter or longer than the statutory period based on what they negotiate.

Waiver of notice

If the employer and employee agree to waive the notice period, the employer is typically required to compensate the employee for the equivalent of the notice period's wages.

End-of-Service Benefits

Severance

Finnish law does not mandate severance pay upon termination. However, some collective agreements or individual employment contracts may provide for severance or gratuity payments.

Other Benefits

  • Unused annual leave

  • Final salary

Termination Documentation

Upon mutual termination, the employer must provide the employee with:

  • A written statement specifying the end date of employment.

  • The reasons for termination, if requested by the employee.

This documentation is essential for the employee's records and may be required for unemployment benefits or future employment opportunities.

Offboarding Process for the End of Fixed-term Contracts in Finland

If the Fixed-Term Contract Ends Normally

Notice

  • There is no statutory requirement to give notice when a fixed-term contract expires naturally on its agreed end date. The contract ends automatically.
  • However, if the contract includes a clause that requires notice before the end date, that clause applies.

End-of-Service Benefits

Severance/Gratuity

No statutory severance or gratuity is payable when a fixed-term contract ends normally.

Other Benefits

  • The employee is entitled to payment for any accrued but unused annual leave.
  • All wages, bonuses, and other earned benefits must be paid up to the contract’s end date.
  • If the fixed-term contract has lasted at least one year, the employee may be entitled to unemployment benefits, provided they meet other criteria.

If the Employer Terminates Early

Notice

  • Early termination of a fixed-term contract is allowed only when the contract or collective agreement explicitly permits it, or when the employee seriously breaches their contractual obligations.
  • If early termination is permitted, the employer must give the notice period specified in the contract or, if none is specified, a reasonable notice period based on the circumstances.
  • If the contract or law does not permit early termination, the employer risks breaching the contract and may be liable for damages.

End-of-Service Benefits

Severance/Gratuity

No statutory severance unless specified in contract or collective agreement.

Other Benefits

  • The employee must be paid for all work done and accrued benefits up to the termination date.
  • Compensation for unused annual leave must be paid.
  • If early termination is due to serious employee fault, benefits may be adjusted accordingly.

Final Payment Timing & Immigration and Visa Compliance in Finland

Final Payment Deadline

The employer must pay all final wages, including accrued holiday pay and any other outstanding compensation, on the employee’s last working day or as soon as possible after it. Any delay may violate employment law and expose the employer to claims or penalties.

Penalty

If the employer delays the final payment without a valid reason, the employee can claim compensation for the delay. The Finnish Employment Contracts Act also allows employees to seek damages when wages are paid late. Repeated or intentional delays may prompt enforcement action from labor authorities and result in fines.

Visa and Immigration Compliance

  • If the employee is a foreign national working in Finland, the employer must actively maintain compliance with all residence permit and work authorization requirements throughout the employment relationship and at the point of termination
  • When employment ends, the employer should notify the relevant immigration authorities if required, especially when the employee’s right to stay in Finland is directly linked to their job.
  • The employee may need to apply for a new residence permit or change their status after termination. The employer should provide any documents needed for this process, such as proof of employment and the termination date. While the employee is responsible for keeping their status valid, the employer should support compliance to avoid potential penalties.

Key Elements of an Employment Contract in Finland
When drafting an employment contract for employees in Finland, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Simplifying Hiring in Finland With RemotePass

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Finland.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

FAQs About Hiring in Finland

Got Questions? Find Answers Here

Is there a minimum wage in Finland?

No. Finland has no statutory minimum wage. Pay is governed by sector-specific collective agreements, which typically set minimum rates between €11-€14 per hour depending on the industry.

Can I terminate an employee without cause in Finland?

No. Termination without cause isn't permitted. Employers may only terminate for "proper and weighty reasons" under Finnish law, such as serious misconduct, repeated breach of duties, or financial/production-related grounds (like reorganization).

How much notice is required for termination?

For employees, notice periods are:

  • Fourteen days for employment up to five years
  • One month for employment over five years

The same minimums apply to employer-initiated terminations, though contracts or collective agreements may require longer notice.

How does parental leave work in Finland?

Finland uses a gender-neutral family leave model. Each parent receives one hundred sixty working days of parental leave allowance. Additionally, the pregnant parent gets forty working days of pregnancy leave before the expected due date. Leave is paid by Social Security.

How is sick leave paid?

The employer pays for the first nine days of sick leave. From day ten onward, Kela (Social Insurance Institution) pays sickness allowance at about 70% of salary for a maximum of three hundred working days. A medical certificate is required after the first day of absence.

How much annual leave do employees get?

Employees earn:

  • Four weeks (twenty-four working days) if they've worked less than one year
  • Five weeks (thirty working days) if they've worked more than one year

Is severance pay mandatory in Finland?

No. Finnish law doesn't mandate severance pay upon termination. However, some collective agreements or individual employment contracts may include severance provisions.

When must I pay final wages after termination?

All final wages, including accrued holiday pay and outstanding compensation, must be paid on the employee's last working day or as soon as possible after. Delays can result in compensation claims and potential fines from labor authorities.

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