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
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
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
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
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.

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Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in Finland
with RemotePass

Finland offers a strategic gateway to the Nordic market, with a skilled workforce and favorable business conditions. RemotePass simplifies the process of hiring and managing employees in Finland, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

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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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
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
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
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
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.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

نمِّ فريقك في The Republic of Finland
مع ريموت باس

Finland offers a strategic gateway to the Nordic market, with a skilled workforce and favorable business conditions. RemotePass simplifies the process of hiring and managing employees in Finland, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

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.

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