🎊 We’ve raised the largest seed round in our industry $14.1M 🎊

Europe

Finland

Request Info
Employer of Record (EOR) in Finland

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Finland Introduction

Finland is a Nordic country in northern Europe, bordered by Sweden, Norway, and Russia. Since WWII the country has rapidly industrialized and built a welfare state with a high income per capita. Finland is considered to be the world’s happiest country and boasts extensive civil liberties and strong economic growth.

Paid Leave and Statutory Leave

Parental Leave

Pregnant employees are entitled to 105 days of unpaid maternity leave, starting between 30 – 50 days before the due date. At this time employees can claim benefits from Finnish Social Insurance. An employer can opt to pay a full or partial salary during the leave, and social security will pay allowances to the employer. Fathers can receive up to 54 days of unpaid paternity leave, taken before the baby’s 2nd birthday.

Sick Leave

Employees in Finland can take 9 days of sick leave each year after working at a company for 1 month, which is paid at 100% of the regular salary. Employees who have worked at their companies for less than 1 month will receive 50% of their wages during sick leave.

Paid Leave

There are 12 public holidays in Finland, and employees can receive 30 days of paid time off each year accrued at 2.5 days per month. Employees can also receive hospitalization leave, education leave, and childcare leave.

Wage Requirements and Working Hours

There is no legally-mandated minimum wage in Finland, but collective bargaining mandates minimum salaries. The average minimum wage is EUR 2,124 per month. Standard working hours are 40 hours per week at 8 hours per day. Any work done past this is considered overtime with a maximum of 250 hours per year. Overtime is paid at 150%-200% of the regular salary.

Termination Process

Process

Employment contracts can be terminated with just cause (such as misconduct, negligence, fraud, or other work-related offenses).

Notice Period

Notice periods depend on how long an employee has worked at a company:

  • 0-1 years = 14 days
  • 1-4 years = 1 month
  • 4-8 years = 2 months
  • 8-12 years = 4 months
  • 12+ years = 6 months

Severance Pay

While there is no severance pay required by law, employers must pay out any unused paid time off days.

Additional Information

While a 13th month salary is not required, 13th month bonus payments are usually paid out before the holidays.

OVERVIEW
Language(s):
Finnish, Swedish
Currency:
Euro (EUR)
Capital City:
Helsinki
Population:
5.5 Million
Cost of Living Rank:
26th
VAT (Valued Added Tax):
24%
Employer TaxES
18.53%
(estimated)

★  16.95% - Pension

★  1.53% - Health Insurance

★  0.5% - Unemployment Insurance

Simplified Global HR and Payroll.
Let’s work on it together.

We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
Best Pricing
Available in 150+ countries
How Remofirst employs in Finland

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Finland get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Finland are paid on time in Euro (EUR). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Finland, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.