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.

Capitale :
Devise :
Euro (€, EUR)
Langues parlées :
Finnish, Swedish
Nombre d'habitants :
5.53 million (2020 est.)
Salaire minimum :
Regulated by CBAs
Index du coût de la vie :
$$$$ (21 of 139 nations)
Payroll Frequency :
Taux normal de la TVA :
Croissance réelle du PIB :
-2.87% (2020)

Statutory Holidays

The holidays mentioned below are valid for the year 2022.

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.

Holiday Name
Extra Information
January 1
New Year’s Day
January 6
April 15
Good Friday
April 17
Easter Sunday
April 18
Easter Monday
May 1
Vappu (May Day)
May 26
Ascension Day
June 5
Whit Sunday
June 24
Midsummer Eve
Movable - Not a public holiday but a holiday for most people including bank employees
June 25
Midsummer Day
November 5
All Saints’ Day
December 6
Independence Day
December 24
Christmas Eve
Not a public holiday but a holiday for most people including bank employees
December 25
Christmas Day
December 26
Boxing Day

Contract Sharing Time

The approximate time for sharing the contract with an employee in Finland is only 4 business days assuming no special requests or changes to our standard employment contract. 

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.

What You Need To Know

  • There is no universal minimum wage payable in Finland. Instead, each sector has a collective bargaining agreement that determines most employment standards.
  • Finland will roll out a new family leave reform effective on August 1, 2022 that increases paid parental leave to a maxium of 320 days, with 160 days to each parent.

Labor Conditions

Working Hours

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%.


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 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 DurationNotice Period
up to one year14 days
1-4 years1 month
4-8 years2 months
8-12 years4 months
More than 12 years6 months 

Leave / Time Off

Annual Leave

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:

  1. 14-day rule: for employees that work at least 14 days per month;
  2. 35-hour rule: for employees that work at least 35 hours during at least one month and do not come under the 14-day rule;

Sick Leave

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.

Parental Leave

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.


Maternity Leave

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 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).

Other Types of Paid Leave

Employment Leave

The duration of employment leave is determined in accordance with the duration of the period of notice as follows:

  • A maximum of five working days in total, if the period of notice does not exceed one month;
  • A maximum of ten working days in total, if the period of notice is longer than one month but does not exceed four months;
  • A maximum of 20 working days in total if the period of notice is more than four months.

Unpaid Leave

Absence for Compelling Family Reasons

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.


Unpaid Time Off

An employer can grant additional unpaid time off at an employee’s request.

Statutory Benefits

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:

Health Insurance1.34%
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 € 2,197,500 / year (2022)

  • 0.50%

For the part of the salary amount exceeding € 2,197,500 / year (2022) 

  • 2.05%
Employer’s TyEL contribution17.40% (average)
Group Life Insurance Premium0.06% (average)

Health Insurance

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. 

Other Insurances

Unemployment Insurance

The employer pays both its own and the employee’s share of the unemployment insurance contribution to the Employment Fund.


Workers’ Compensation Insurance

The employer pays the workers’ compensation insurance contributions to the insurance company of its choice. 


Employees’ Group Life Insurance

The employer pays the employees’ group life insurance contributions to the insurance company of its choice. It is paid in full by the employer.

Public Pension

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 17-527.15%
Proportion of employee aged 53-628.65%
Share of employee over 63 years of age7.15%

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.

Other Statutory Benefits

Child Benefit

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.


Disability Benefits

There are three different kinds of disability allowance:

  • alle 16-vuotiaan vammaistuki
  • 16 vuotta täyttäneen vammaistuki
  • eläkettä saavan hoitotuki


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.

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