Hire and pay employees in
Finland, hassle-free

With Deel, your business can easily hire employees in Finland. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Finland is 3 days with Deel.

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Currency

Euro - EUR

Capital

Helsinki

Official Language

Finnish and Swedish

Payroll Cycle

Monthly

Onboard, pay and manage employees in Finland with Deel.

Usually, to hire in Finland, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Deel lets you hire employees in Finland quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

Download the Guide

All the necessary benefits for Finland
built right in

Deel allows you to provide localized benefits for employees in Finland within minutes. All in one manageable online dashboard.

  • Occupational Health Insurance
  • Pension Insurance
  • Workers Compensation Insurance
  • Private Healthcare - Unisure (optional)
  • Private Healthcare - Allianz (optional)

Our quickstart guide to hiring in Finland

Navigate the tabs below to learn everything you need to know about hiring an employee in Finland

Pay & Tax Leave Policy Termination Statutory time off Onboarding Additional info

Minimum Wage Requirements

There are no provisions regarding the minimum salary stipulated in the law. The wage can vary according to the collective agreement that applies to the company. 

Individual Income Tax

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

Gross Annual Income National Tax Rate (%)
Up to EUR 30,000 11.5%
Up to EUR 40,000 17%
Up to EUR 50,000 21%
Over EUR 60,000 24.5%
Over EUR 70,000 27%

Payroll Cost

The employer cost is generally estimated at 20.45% of the employee salary.
  • Social Security - 1.16%
  • Public Pension Fund - 18.15%
  • Unemployment Insurance* - 0.27%
  • Work Accident Insurance - 0.80%
  • Group Health Contribution - 0.07%
  • 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.

Overtime Pay & Maximum Hours

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.

Maternity Leave

Employees are entitled to 105 working days of paid leave. The paid leave must start 30 days before the child's birth and end 75 days after the due date. 

Kela (Social Insurance) will pay a minimum of EUR 29.05 per day during this period. Kela will calculate the exact leave with the annual salary of the employee. 

The employee can extend leave using parental leave.

Paternity Leave

Employees are entitled to 54 days of paid paternity leave. A maximum of 18 days can overlap with maternity leave. The rest of the paternity leave can be taken in a maximum of 2 separate periods before the child is 2 years old. 

Kela (Social Insurance) will pay a minimum of EUR 29.05 per day during this period. Kela will calculate the exact leave with the annual salary of the employee.  

The employee can extend leave using parental leave.

Parental Leave

Employees are entitled to 158 working days of parental leave. Both parents can decide how to distribute the time off, which should be taken immediately after maternity leave. 

Kela (Social Insurance) will pay a minimum of EUR 29.05 per day during this period. Kela will calculate the exact leave with the annual salary of the employee. 

An employee is entitled to extended childcare leave from the day parental leave ends until the child turns three years old.

Parental leave is a different type of leave from maternity and paternity leave. In some countries, parental/child care leave is granted to the parents on top of the standard leave.

Sick Leave

Employees are entitled to paid sick leave up to 300 days. 

For the first ten days the employer pays 100% of the salary if the employee worked for more than a month or 50% if the working period was less than a month long. 

From the eleventh day, Social Insurance (Kela) will cover 40-60% of the salary.

Termination Requirements

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

Notice Period

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.

Severance for Employees

Severance is not required and will only be paid at the employer's discretion. In exceptional cases, the employee can claim severance from the employer.

Paid Time Off

Both full-time and part-time employees are entitled to 30 days of paid time off (PTO) a year. PTO accrues at 2.5 days per month. Annual leave is calculated from the 1st of April until the end of March.  

Usually, the season is May-September for summer holidays and October-April for winter holidays.

Public Holidays

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

Onboarding

3 business days after MSA signature & deposit payment. 

Employment Contract Details

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.

Probation Period

  • 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.

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Hiring in Finland, hassle-free

With Deel, your business can easily hire employees in Finland with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Finland and 150+ countries.

Group (8)

Starting at 599 USD

Management fee

Group (9)

20.45%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Finland?

View our Employee Cost Calculator
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