Your quick guide on talent and labor compliance norms in Finland
Capital
Helsinki
Currency
Euro (EUR)
Languages
Finnish, Swedish, English
Payroll Frequency
Monthly
GDP per Capita
$55,957.47
Employer Tax
20.07% - 21.61%
Talent Overview
Finland has consistently ranked at the top position in the World Happiness Report since 2018. The Nordic country offers its people countless parental leaves, supports the unemployed, and free healthcare and education for all. Small and medium businesses employ a vast majority of the Finnish population. The country’s main exports are paper, machinery, oil, and vehicles.
Major economic hubs:
Helsinki, Espoo, Tampere, Vantaa
Skills in demand:
Software engineers, Nursing professionals, Educators.
Local Universities
The top local universities in Finland are as follows:
Local: 1
World: 119
Local: 2
World: 191
Local: 3
World: 229
Local: 4
World: 472
Local: 5
World: 489
Salary Data
Some of the top jobs and their corresponding monthly salaries are as follows:
Job Description | Average Monthly Salary (EUR) | Average Monthly Salary (USD) |
Accounting manager | 6,980 | 7,825 |
Financial analyst | 5,790 | 6,491 |
Office manager | 4,150 | 4,653 |
Graphic designer | 2,840 | 3,184 |
Business Development Manager | 7,360 | 8,251 |
Developer/Programmer | 4,470 | 5,011 |
Talent Sourcing Tips
TipTop Job, Duunitori, Te Palvelut
1,719,000
Collective agreements form the basis of Finnish labor laws. All employees working in Finland, irrespective of their nationalities, are covered under Finland’s labor and occupational safety legislation.
Finland’s official languages are Finnish and Swedish. However, employment contracts may be in any language understood by the employee.
The usual probationary period followed in Finland is from one to six months.
Date | Name | Type |
1 Jan | New Year’s Day | National holiday |
6 Jan | Epiphany | National holiday |
29 Mar | Good Friday | National holiday |
31 Mar | Easter Sunday | National holiday |
1 Apr | Easter Monday | National holiday |
1 May | May Day | National holiday |
9 May | Ascension Day | National holiday |
22 Jun | Midsummer | National holiday |
2 Nov | All Saints’ Day | National holiday |
6 Dec | Independence Day | National holiday |
24 Dec | Christmas Eve | De facto and Bank holiday |
25 Dec | Christmas Day | National holiday |
26 Dec | Boxing Day | National holiday |
Type of leave | Time Period | Mandatory |
Annual leave/Earned Leave | 24 days | Yes |
Sick Leave | 10 days | Yes |
Maternity Leave | 18 weeks | Yes |
Payroll
Payroll Cycle
The employee must be paid monthly or bi-monthly per the collective agreement.
Minimum Wage
There is no statutory minimum wage followed in Finland.
Overtime Pay
The standard working hours in Finland are 8 hours a day and 40 hours a week. The overtime pay is compensated as per the table below:
Bonus
There is no specific legal provision for a 13th-month salary in Finland, but they are customary and are paid before the holidays.
Taxes
Category | Rate |
Health/Sickness Insurance | 1.53% |
Pension Insurance | 17.39% |
Unemployment Insurance | 0.52% for first EUR 2,197,500 and 2.06% afterward |
Group Life insurance | 0.06% |
Accident Insurance Premium | 0.57% |
Total | 20.07% – 21.61% |
Category | Rate |
Pension Insurance | 7.15% (If below 53 years) or 8.65% |
Health/Sickness Insurance | 1.96% |
Unemployment Insurance | 1.50% |
Total | 10.61 % – 12.11% |
Taxable income (EUR) | Tax on column 1 (EUR) | Tax on excess (%) | |
0 – 19,900 | 0 | 12.64 | |
19,900 – 29,700 | 2,515 | 19.00 | |
29,700 – 49,000 | 4,377 | 30.25 | |
49,000 – 85,800 | 10,215 | 34.00 | |
85,800 and above | 22,727 | 44.00 |
Capital (investment) income is taxed at 30% and 34%.
A standard rate of 24% is followed in Finland.
Offboarding & Termination
Termination in Finland can be done on a mutual consent basis. An employer in Finland may terminate the employment contract of a regular employee for redundancy or any other reasons. An employee can terminate the employment contract without giving any reason to the employer. Upon completion of the employment, employees are entitled to a written certificate on request.
The notice period for employees during the probationary period is from 14 days to 30 days, while for permanent employees, it ranges from 14 days to 180 days.
Employees in Finland are not entitled to severance pay unless expressed in the agreement.
Visa and Immigration
Nationals of the EU countries and nationals of countries that belong to the European Economic Area may work in Finland without a residence permit. Other nationals must have a residence permit and a work permit to work in Finland.
Overtime Period | Overtime Pay |
First 2 hours | 50% premium |
After the frst 2 hours | 100% premium |
Rest day / Sunday | 200% of the regular hourly wage |