Hire in Finland

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.

For companies expanding globally, Finland EOR solutions make it easier to manage compliance, payroll, and employment regulations locally.

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Finland.

Onboard your talent in Finland

in 10 minutes

Power icon

Accelerated onboarding

Fast-track your talent onboarding while ensuring 100% compliance with local regulations. using an Employer of Record in Finland

Calculator icon

Net salary calculator

Calculate net salary post deductions and compare it with the salary in other countries instantly.

Reading icon

Guidance & payroll management

Receive process support by an experienced team of experts & pay your talent on time and in their local currency, ideal for companies looking to hire employees or contractors in Finland

People icon

Hire in Finland through an

EOR

Easily onboard your remote talent in Finland through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.

A quick overview of Finland

Calendar remove icon
Cost of living index

$$$$ (21 of 139 nations)

Euro icon
Currency

Euro (€, EUR)

Dollar bill icon
Payroll frequency

Monthly

Basic facts

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.

For companies expanding globally, Finland EOR solutions make it easier to manage compliance, payroll, and employment regulations locally.

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Finland.

Capital

Helsinki

Official language/s

Finnish, Swedish

People icon
Population

5.63 million (2024 est.)

US dollar icon
VAT - standard rate

24%

The national holidays mentioned below are valid for the year 2026 and are critical for hiring in Finland planning:

The national holidays mentioned below are valid for the year 2026.

The Finnish calendar has 20 flag days. The calendar for the Swedish-speaking population has three additional official flag days for the Åland Islands. The Sámi have 12 of their own official flag days.

Awareness of statutory holidays in Finland is essential for workforce planning, payroll accuracy, and compliance when using Finland EOR services.

January 1New Year’s Day
January 6Epiphany
April 3Good FridayMovable
April 5Easter SundayMovable
April 6Easter MondayMovable
May 1May Day
May 14Ascension Day Movable
May 24Whit SundayMovable
June 19Midsummer EveMovable
June 20Midsummer DayMovable
November 1All Saints’ Day Movable
December 6Independence Day
December 24Christmas Eve
December 25Christmas Day
December 262nd Day of Christmas

The approximate time for sharing the contract with an employee in Finland is 2 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • There is no universal minimum wage payable in Finland. Instead, each sector has a collective bargaining agreement that determines most employment standards.
  • This is a key consideration when you hire employees in Finland or structure compensation through a Finland EOR arrangement.

The statutory social insurance contributions in Finland are:

  • The earnings-related pension insurance contribution;
  • The workers’ compensation insurance contribution;
  • The employee’s group life insurance contribution;
  • The unemployment insurance contribution;
  • The social and health insurance contribution.

 

The employer and the employee pay for social security together. Finnish statutory earnings-related pensions, as well as the workers’ compensation insurance and the employees’ group life insurance, are managed by private pension insurers. The Employment Fund administers unemployment insurance. Social insurance and health insurance contributions are paid to the tax authorities. 

 

Employer’s social security contributions in percentage of income:

Categories Contribution
Health Insurance 1.53%
Workers’ Compensation Insurance
  • Between 0.05 – 5%
  • The average on 2021 is 0.70% of the wage sum
Unemployment Insurance (collected by the Employment Fund) For a salary amount not exceeding €2,251,500 / year (2023)

  • 0.52%

For the part of the salary amount exceeding €2,251,500 / year (2023) 

  • 2.06%
Employer’s TyEL contribution 17.40% (average)
Group Life Insurance Premium 0.06% (average)

Understanding the leave policy in Finland is critical for workforce planning and statutory compliance when you hire through a Finland EOR.

Working Hours

The standard working hours in Finland are eight hours a day and 40 hours a week.

A clear understanding of Finland working hours helps employers stay compliant when managing local and remote teams through an Employer of Record.

 

Overtime

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 first two 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%.

 

Probation Period

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.

Termination Notice Period

Fixed-term contracts end 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 

Understanding the leave policy in Finland is critical for workforce planning and statutory compliance when you hire through a Finland EOR.

Working Hours

The standard working hours in Finland are eight hours a day and 40 hours a week.

A clear understanding of Finland working hours helps employers stay compliant when managing local and remote teams through an Employer of Record.

 

Overtime

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 first two 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%.

 

Probation Period

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.

Termination Notice Period

Fixed-term contracts end 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 

Book a free demo to access this information

The statutory social insurance contributions in Finland are:

  • The earnings-related pension insurance contribution;
  • The workers’ compensation insurance contribution;
  • The employee’s group life insurance contribution;
  • The unemployment insurance contribution;
  • The social and health insurance contribution.

 

The employer and the employee pay for social security together. Finnish statutory earnings-related pensions, as well as the workers’ compensation insurance and the employees’ group life insurance, are managed by private pension insurers. The Employment Fund administers unemployment insurance. Social insurance and health insurance contributions are paid to the tax authorities. 

 

Employer’s social security contributions in percentage of income:

Categories Contribution
Health Insurance 1.53%
Workers’ Compensation Insurance
  • Between 0.05 – 5%
  • The average on 2021 is 0.70% of the wage sum
Unemployment Insurance (collected by the Employment Fund) For a salary amount not exceeding €2,251,500 / year (2023)

  • 0.52%

For the part of the salary amount exceeding €2,251,500 / year (2023) 

  • 2.06%
Employer’s TyEL contribution 17.40% (average)
Group Life Insurance Premium 0.06% (average)

How WorkMotion Hires Employees in Finland

WorkMotion acts as the legal employer in Finland, handling every step of the employment lifecycle — so your company can focus on managing the work, not the compliance.

Here is how the process works:

Step 1: Employment Contract Generation

WorkMotion generates a locally compliant employment contract aligned with the Finnish Employment Contracts Act. The contract covers the required statutory terms: job title, compensation, working hours, notice periods, and any applicable collective bargaining agreement (Työehtosopimus, or TES) obligations. Finland has around 160 universally binding collective agreements — WorkMotion identifies which applies to your hire’s sector and builds it into the contract from the start.

Step 2: Registration With Finnish Authorities

The EOR registers with the Finnish Tax Administration (Vero) and the Incomes Register (Tulorekisteri), which all Finnish employers are required to use for reporting income-related data. Employees are enrolled in the statutory earnings-related pension system (TyEL) and registered for health insurance contributions managed through Kela, the Social Insurance Institution of Finland.

Step 3: Payroll Setup in Euros

WorkMotion sets up monthly payroll in euros — Finland’s standard payroll cycle. Income tax is withheld at source based on the employee’s personal tax card, using Finland’s progressive national and municipal income tax rates. Employer-side statutory contributions — covering pension, health insurance, unemployment insurance, accident insurance, and group life insurance — are calculated and remitted to the relevant Finnish authorities.

Step 4: Statutory Benefits Enrollment

Employees are enrolled in all legally required benefits:

  1. Occupational healthcare (a mandatory employer obligation in Finland), statutory annual leave (a minimum of 25 days)
  2. Sick leave
  3. Parental leave (under the Annual Holidays Act and applicable CBAs)

WorkMotion ensures CBA-specific obligations — such as holiday bonuses (lomaraha) where required — are factored into payroll from day one.

Step 5: Monthly Payroll and Contribution Remittance

Each month, WorkMotion calculates gross salary, applies income tax withholding, deducts employee contributions, and remits net salary to the employee’s Finnish bank account. Employer contributions are reported and paid to Vero and the relevant social insurance institutions, with strict reporting deadlines around the 12th of the following month.

Step 6: Ongoing Compliance Monitoring

Finnish employment law is actively evolving — the government has introduced reforms to the Employment Contracts Act, local bargaining rules, and fixed-term contract provisions in recent years. WorkMotion monitors regulatory changes and updates employment terms accordingly, so your company’s obligations stay current without requiring your HR team to track Finnish labor law developments directly.

Use WorkMotion’s Employment Cost Calculator to estimate the full cost of a hire in Finland — including gross salary, employer contributions, and EOR fee — before you commit.

WorkMotion’s EOR vs. Setting Up a Finnish Entity

For most companies hiring one to a handful of employees in Finland, EOR is the faster, lower-risk path. Here is how the two options compare:

Factor EOR With WorkMotion Setting Up a Finnish Entity
Setup cost No entity setup cost — per-employee monthly fee Registration fees plus legal and accounting costs
Time to first hire Days from signed contract to payroll enrollment Weeks to months — PRH registration alone typically takes around a month, with tax registrations adding further time
Ongoing legal exposure WorkMotion holds legal employer obligations — compliance risk sits with the EOR Your entity is directly liable for all employment law, payroll tax, and CBA compliance
Ongoing admin burden WorkMotion manages contracts, payroll, contributions, and reporting Your team manages Finnish payroll, Incomes Register reporting, tax filings, and CBA obligations
Exit flexibility Scale up or down without entity overhead — offboard cleanly when needed Dissolving a Finnish entity requires formal deregistration with the PRH and Tax Administration

EOR fits companies that need to hire in Finland quickly, want to test the market before committing to a permanent structure, or are hiring a small number of specialized roles.

If your company is building a large, permanent Finnish operation with significant local headcount, entity setup may eventually make sense — WorkMotion’s Direct Hiring solution can also support that transition, allowing you to register as a foreign employer in Finland while WorkMotion continues to handle payroll and compliance.

What Foreign Employers Often Get Wrong When Hiring in Finland

Finland has one of the most structured labor markets in Europe. The compliance gaps that catch foreign employers out are rarely obvious — they sit in the details of collective agreements, reporting obligations, and statutory entitlements that differ from what most companies are used to.

Assuming There Is No Minimum Wage – and Getting Compensation Wrong Anyway

Finland has no statutory national minimum wage. But that does not mean wages are unregulated. Around 160 universally binding collective bargaining agreements (CBAs) set sector-specific minimum pay rates — and they apply to all employers operating in that sector, regardless of whether the employer is a member of the relevant employers’ association.

A foreign company that sets compensation without checking the applicable CBA can find itself in breach before the employee’s first paycheck. WorkMotion identifies the relevant CBA for each hire and builds compliant compensation terms into the contract from the outset.

Underestimating Total Employer Costs

Gross salary is only part of the picture. Employer contributions in Finland — covering TyEL pension, health insurance, unemployment insurance, accident insurance, and group life insurance — typically add 20–25% on top of base salary. Many CBAs also require holiday bonuses (lomaraha), which are not optional where they apply. WorkMotion provides a transparent cost breakdown per employee before you commit, so finance teams can forecast accurately.

Missing the Incomes Register Reporting Deadlines

All Finnish employers must report salary payments to the national Incomes Register (Tulorekisteri), with strict deadlines — typically by the fifth calendar day after payment. Late or incorrect reporting triggers penalties. This is a routine obligation for WorkMotion’s payroll team; for a foreign company managing Finnish payroll for the first time, it is a common source of compliance errors.

Getting Termination Wrong

Finland’s Employment Contracts Act requires employers to have justifiable grounds to terminate an indefinite employment contract — economic or production-related reasons, or personal grounds such as serious misconduct. Notice periods are set by statute and often extended by the applicable CBA. Employers cannot simply give notice without documented cause. WorkMotion’s local HR and legal team manages termination processes in line with Finnish law, including the correct notice period calculation and any CBA-specific requirements.

Overlooking the Mandatory Occupational Healthcare Obligation

Unlike in many other countries, occupational healthcare is a legal requirement for all Finnish employers — not an optional benefit. Employers must arrange and fund preventive occupational healthcare services for all employees.

Foreign companies unfamiliar with Finnish employment norms often miss this obligation entirely. WorkMotion builds occupational healthcare into the standard benefits setup for every employee hired in Finland.

Who Hires in Finland Through WorkMotion

These are just some examples of companies who would benefit from using WorkMotion’s Finland EOR service.

European B2B SaaS and Tech Companies Hiring Senior Engineers

A Netherlands-based SaaS company needs a senior backend developer in Helsinki. The Finnish tech talent pool — particularly in software engineering, AI, and data — is strong, and competition for these roles is high domestically.

Rather than waiting months for entity setup, the company uses WorkMotion’s EOR to get a compliant employment contract in place within days. The developer is onboarded, enrolled in TyEL pension and occupational healthcare, and on payroll — while the company retains full control of day-to-day work.

German and UK Companies Expanding Into the Nordic Market

A German industrial software firm wants to hire a country sales lead in Finland to develop the Nordic market. Setting up a Finnish entity for a single hire would take weeks and create ongoing administrative overhead. WorkMotion provides the legal employment infrastructure — compliant contract, local payroll, statutory benefits — while the company focuses on market development. If the Finnish operation grows, WorkMotion’s Direct Hiring solution can support a transition to direct employment under the company’s own brand.

Remote-First Tech and Green Energy Companies Building Distributed Teams

A UK-based green tech company with a fully distributed workforce wants to add a Finnish regulatory affairs specialist. The role requires someone based in Finland with local market knowledge. The company has no European entity and no plans to establish one. WorkMotion handles the employment relationship through its partner network in Finland — contract, payroll, benefits, and compliance — so the company can hire the right person in the right location without building local HR infrastructure from scratch.

Start Hiring in Finland With WorkMotion Today

Finland offers access to a highly skilled workforce — particularly in technology, engineering, and specialized professional roles — but getting employment right requires navigating collective bargaining agreements, statutory contribution obligations, and a regulatory framework that changes as the government continues to reform Finnish labor law.

WorkMotion handles that compliance layer through its partner network in Finland, generating locally compliant contracts, running monthly payroll in euros, managing statutory benefits, and keeping your employment terms current as regulations evolve. Your team manages the work. WorkMotion manages the legal employment.

If you need to hire in Finland this quarter — without entity setup, without compliance uncertainty, and without months of administrative groundwork — the next step is a conversation.

Book a Demo

Employer of Record Finland: FAQs

WorkMotion operates through its own entity in Finland — there are no third-party intermediaries involved in your employee’s employment relationship. This means WorkMotion holds direct employer-of-record liability for labor law compliance, payroll accuracy, and statutory contributions, rather than passing responsibility to a local partner. For companies evaluating EOR services in Finland, this distinction matters: own-entity coverage provides a cleaner compliance structure and a single point of accountability.

Finland has no statutory national minimum wage, but sector-specific collective bargaining agreements (TES) cover approximately 88–90% of Finnish employees — and many are declared universally binding, meaning they apply to your company regardless of whether you’re a member of a Finnish employers’ association. These agreements set wage floors, overtime rates, holiday bonuses, and other entitlements that override any less favorable contract terms. WorkMotion identifies the applicable TES for each role before the contract is drafted, so compensation and benefits are compliant from day one rather than corrected after the fact.

Finnish employer contributions include pension insurance under the Employees’ Pensions Act (TyEL), health insurance contributions paid to the Tax Administration, unemployment insurance contributions paid to the Employment Fund, and mandatory occupational accident insurance. Contribution rates are updated annually by the Finnish Tax Administration, so the exact percentages shift year to year. WorkMotion’s payroll specialists monitor these rate changes and apply them automatically, so your total employment cost stays accurate without your finance team tracking Finnish regulatory updates.

With WorkMotion’s EOR in Finland, a new hire can typically be onboarded within days of a signed contract — covering employment contract generation, registration with the Finnish Tax Administration (Vero), enrollment in the relevant social insurance schemes, and payroll setup. The main variable is the employee’s individual tax card from Vero, which determines the correct income tax withholding rate; WorkMotion guides employees through obtaining this as part of the onboarding process. This compares to three to six months for a company setting up its own Finnish entity before making a single hire.

Finland does not permit at-will termination — employers must have legally justifiable grounds, either personal grounds such as serious misconduct or economic and production-related grounds. Notice periods range from 14 days to six months depending on the employee’s length of service, and collective terminations trigger formal consultation requirements under Finnish law.

Occupational healthcare is a legal requirement in Finland for every employee, regardless of working hours or contract type — it is not optional. The coverage must include preventative services, not just treatment, and employers who fail to arrange it face both legal liability and a poor employee experience.

EOR through WorkMotion is typically the right fit for companies hiring one to ten employees in Finland, testing the market before committing to a permanent structure, or wanting to avoid the overhead of running a local entity for a small team. If your plans involve building a substantial, long-term presence in Finland under your own brand, WorkMotion’s Direct Hiring solution — which supports foreign employer registration in European markets — is worth evaluating alongside EOR as your team grows.

To see the full cost of employment in Finland before you commit, including employer contributions and the EOR fee, book a demo and WorkMotion’s team can walk you through a country-specific cost breakdown.

Experience global employment done right

Discover how WorkMotion helps you hire anywhere, stay compliant, and manage global teams with ease.

What you’ll learn in your live demo

Trusted by