Hire and pay employees in
Finland, hassle-free

The individual national income tax ranges from 6% to 32%. Income tax is calculated according to progressive rates for national taxes. Employees also pay an additional flat rate for municipality taxes (up to 10.86%). Multiple additional factors may impact overall rates such as Church Tax, number of children, among others

• Social Security - 1.16%
• Public Pension Fund - 18.076%
• Unemployment Insurance - 0.8%
• Work Accident Insurance - 0.324%
• Group Health Contribution - 0.057%
• Occupation Health Insurance - EUR 3.00

*Up to an annual salary of EUR 2,337,000. An additional 1.09% applies on the portion of salary over EUR 2,337,000/year.

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Standard working hours are 7.5 hours per day and 37.5 hours per week, but the client can change this to 40 hours a week and 8 hours a day if they want to. The standard work week is from Monday to Friday.

Overtime pay is not mandatory.

Overtime must be mutually agreed on in the employment agreement (EA). If there is overtime in the EA, hours outside of standard work hours are paid according to the Working Hours Act.

For additional hours, the employer can pay employees:

• 150% of the hourly rate for the first 2 hours.
• 200% of the hourly rate for the following hours.

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

The employer or employee may terminate agreements in Finland. If the decision is from the employer, the employee must be consulted and be allowed to present an opinion on the matter.

Compliant terminations include:

• Expiry
• Dismissal
• Resignation

The minimum notice period is 14 days and will be increased according to the length of the employment and who initiates the termination.

Termination by the employer:

• 14 days if the length of service is less than 1 year.
• 1 month if the length of service is up to 4 years.
• 2 months if the length of service is up to 8 years.
• 4 months if the length of service is up to 12 years.
• 6 months if the length of service is more than 12 years.

Termination by employee:

• 14 days if the length of service is less than 5 years.
• 1 month if the length of service is more than 5 years.

Finland celebrates 13 holidays based on the location of the employee.

National public holidays include:

1. New Year's Day
2. Epiphany
3. Good Friday
4. Second Easter Day
5. Vappu
6. Ascension Day
7. Midsummer Eve
8. Midsummer Day
9. All Saints' Day
10. Independence Day
11. Christmas Eve
12. Christmas Day
13. Second Day of Christmas

Contracts can be in English or bilingual. They must be written and signed by both parties.

A contract must include:

• Name
• Start date
• Job description
• Working Hours
• Remuneration and Benefits
• Annual leave
• Probation (if applicable)
• Termination conditions
• Qualifications of the employee
• Duration
• Place of Work
• Collective Agreement (if applicable*)

*Deel Finland is not subject to a collective bargaining agreement at this stage. Note that the collective agreements of some industries set restrictions on the use of leased employees.

Contract backdating is allowed in limited circumstances.

• For fixed term contracts, a maximum of half of the length of the job will last less than a year or 180 days
• For indefinite term contracts, the maximum is 180 days

Probation periods are not mandatory.