What does a $60,000 hire cost in Finland?
Drag to adjust salary
Total annual employer cost
Full cost breakdown
Statutory contributions and typical benefits for an employee in Finland at $60,000 base salary.
Unlock your full breakdown
Get instant access to the full cost breakdown for Finland.
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.
Continent
Europe
Capital
Helsinki
Currency
Euro (EUR)
Language
Finnish
Payroll Cycle
Monthly
VAT
24%
Quick Facts For Hiring In Finland
Finland Employment Contract Overview
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
Payroll
Average employer cost
18.53% to 20.38%
| Category | Details |
|---|---|
| 13th Salary | Not mandatory; subject to employer discretion |
| Avg employer tax | 18.53% to 20.38% |
Tax Breakdown
Personal Income Tax (PIT)
| Category | Rate / Details |
|---|---|
| €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)
| Category | Rate / Details |
|---|---|
| Standard Rate | 18% (reduced from 20% in April 2025) |
Social Security Contributions
Employee Contributions
| Category | Rate / Details |
|---|---|
| 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
| Category | Rate / Details |
|---|---|
| Pension Insurance | 7.15% |
| Unemployment Insurance | 0.20% for salaries up to €2,455,500; 0.80% above that |
| Health Insurance | 1.35% |
VAT
| Category | Rate / Details |
|---|---|
| VAT | 24% |
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
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. |
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.
Supporting Guides
Frequently Asked Questions
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:
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:
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.
