Finland is located in northern Europe, one of the world’s most northern and geographically remote countries. Nearly two-thirds of Finland is blanketed by thick woodlands, making it the most densely forested country in Europe. Finland ranked highest in happiness, reaching 8.2 on a 10-point scale in 2016 versus an EU average of 7.4.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Finland.
Euro (€, EUR)
Languages spoken :
5.53 million (2020 est.)
Minimum wage 2022 :
Regulated by CBAs
Cost of Living index :
$$$$ (21 of 139 nations)
Payroll Frequency :
VAT - standard rate :
GDP - real growth rate :
When hiring new employees in Finland through WorkMotion, the approximate onboarding time is only 4 business days.
Our team ensures compliance with local employment legislation, as well as a quick and efficient onboarding process. The minimum onboarding time begins from the moment that WorkMotion has received all required information from both the client and the employee.
For more complex onboardings, this time may increase depending on the selected bouquet of contract inclusions and the right-to-work status of the employee.
The standard working hours in Finland is eight hours a day and 40 hours a week.
The maximum amount of working time, including overtime, cannot exceed 48 hours per week, over a period of four months. For daily overtime (over eight hours per day), the two first overtime hours of a working day must be compensated with the regular wage plus 50%; the additional will be the regular wage plus 100%.
For weekly overtime (over 40 hours per week), the compensation is the pay plus 50%.
The maximum length of a trial period is six months. In the case of fixed-term contracts, the length of the trial period, including any extensions, cannot exceed half the length of the contract.
Fixed-term contracts are ended without notice at the end of the pre-specified employment period. Indefinitely valid employment relationships end either by mutual agreement between the employer and the employee or by a unilateral act of termination (giving notice).
|Job Duration||Notice Period|
|up to one year||14 days|
|1-4 years||1 month|
|4-8 years||2 months|
|8-12 years||4 months|
|More than 12 years||6 months|
Employees are entitled to 24 or 30 days of annual leave depending on their earned holiday credit based on the Annual Holidays Act.
Employees can earn their holiday the following ways:
A doctor’s certificate is required for the period during which an employee is unable to work. Employees who are prevented from performing their work by an illness or accident are entitled to pay during illness.
If the employment relationship has lasted less than a month, employees are entitled to 50% of their pay. If the employment relationship lasts more than one month, employees are entitled to full pay for the period of disability up to the end of the ninth day following the date of falling ill.
A new Act reforming parental benefits will come into effect on August 1, 2022. Under the new Act, paid parental leave will be increased to a maximum of 320 days. Parental allowance will also be increased for the first 16 working days. The increased daily allowance is up to 90% of earned income. If a child has two parents entitled to parental benefit, the parental benefit days are divided equally between the parents, (160 working days each).
The current parental leave is 158 weekdays, and paid by Kela, the Social Insurance Institution of Finland. The parental leave begins after the maternity leave. Either the mother or the father can take parental leave, or the parents can take turns. Adoptive parents are given a parental leave of a minimum of 200 workdays and a maximum of 234 workdays from the time the child is born.
The maternity leave can begin 30-50 working days(or about 5-8 weeks) before the expected due date. Employees can choose when to start the leave. Maternity allowance is paid by Kela for 105 working days during maternity leave.
Paternity allowance is payable during the paternity leave for 54 working days. Up to 18 days of that can consist of a period in which both the father and the mother stay at home. During paternity leave, Kela pays a paternity allowance (isyysraha).
The duration of employment leave is determined in accordance with the duration of the period of notice as follows:
Employees shall be entitled to temporary absence from work due to compelling reasons such as family illnesses or accidents. The employer is not required to pay the employee’s remuneration for the duration of this family leave.
An employer can grant additional unpaid time off at an employee’s request.
The employer and the employee must pay social security contributions to the tax authorities if the employee is insured in Finland according to the Health Insurance Act.
The employer pays both its own and the employee’s share of the unemployment insurance contribution to the Employment Fund.
The employer pays the workers’ compensation insurance contributions to the insurance company of its choice.
The employer pays the employees’ group life insurance contributions to the insurance company of its choice. It is paid in full by the employer.
The employer pays both its own and the employee’s share of the earnings-related pension contribution to the pension insurance company of its choice. In 2022, the average total earnings-related pension insurance contribution rate is 24.85% of the employee’s monthly gross wage.
The employee’s share of the contribution is as follows:
|Employee’s share of the TyEL contribution (based on age)||Percentage|
|Proportion of an employee aged 17-52||7.15%|
|Proportion of employee aged 53-62||8.65%|
|Share of employee over 63 years of age||7.15%|
Based on the rates in the table above, the employer withholds the employee’s share of the contribution in connection with paying out the wage.
Kela, the national social insurance organization, pays child benefits for children under the age of 17. Beneficiaries can receive child benefits from the beginning of the month following the birth of the child.
There are three different kinds of disability allowance:
The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.
Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.
31st May – 11AM CEST.
During the webinar, we will discuss the employer risks
related to temporary work from abroad!