Hire employees in Finland No entity needed.
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.
Finland also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Finland quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
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.
- Health Insurance
- Worker Compensation Insurance
- Unemployment Insurance
Currency: Euro (EUR)
Official language: Finnish and Swedish
Payroll Cycle: Monthly
Paid Time Off
In Finland, employees are entitled to 30 days of paid holiday a year.
- New Year’s day
- Good Friday
- Easter Day
- Second Easter Day
- Labor Day
- Ascension day
- Pentecost Monday or Whit-Monday
- Midsummer Day
- All Saints’ Day
- Independence Day
- Christmas Eve
- Christmas Day
- Boxing Day
Individual Income Tax
The income tax in Finland will depend on the gross income of the person, and can range up to 60% of the employee's salary.
Income tax according to the income can raise up to 32%. Also, the employee must pay the municipal tax that can vary between 16.50% up to 23% and the church tax that can be up to 2.2%.
The employer cost rate is approximately 19% of the employee' salary.
Employment Contract Details
There are no specific rules governing the language for employment contracts as long as the employee understands the contract language. Bilingual wording is recommended for employees without the relevant language skills. Contracts must be in writing.
The maximum probation period is 6 months.
Minimum Wage Requirements
There are no provisions regarding minimum salary stipulated in law.
Maximum working hours and overtime
Working hours are generally 8 hours per day and 40 hours per week at most. It is common practice to work 5 days a week, though some flexibility is allowed for certain sectors and undertakings.
Bonus and expense payments
The bonus for the 13th salary is not mandatory for all employees in Finland. This benefit will depend on the person's work area. It will be dealt with on a case-by-case basis.
Employees are entitled to 158 working days of parental leave immediately after the end of the maternity leave. As a result, the total length of maternity and parental leave corresponds to approximately 9 months. Parental leave can be taken by either parent. In addition, an employee is entitled to childcare leave from the day parental leave ends until the child turns 3 years old.Only one of the parents may take the same time but they may share the leave between them.
- Maternity leave: employees are entitled to 105 working days of maternity leave. Employers are not required to pay salary during this period. However, many collective agreements require the employer to pay full salary for the first 3 months.
- Paternity leave: employees are entitled to take paternity leave of a total of 54 working days. A maximum of 18 workdays may be taken whilst the partner is on maternity or parental leave.
Entitlement to sick leave from the state social insurance fund commences 9 working days after the illness begins. Generally, the employer will pay the employee's wages during this waiting period.
Termination requirements for employees in
Termination costs are a maximum of 6 months’ salary according to seniority. Additionally, any not taken holidays must be paid out upon termination by payment in lieu as well as any unpaid commission or bonuses. The employer may be required to pay a lump sum compensation equivalent to 24 months’ pay if the employee successfully challenges the dismissal in court.
In Finland, the notice period is based on the length of the labor relationship:
When the employer initiates the termination:
- Up to 1 year employment – 14 days’ notice
- 1 - 4 years of employment – 1 months’ notice
- 4 - 8 years of employment – 2 months’ notice
- 8 - 12 years of employment – 4 months’ notice
- 12+ years of employment – 6 months’ notice
When employee initiates the termination:
- 1 - 5 years of employment – 14 days’ notice
- 5+ years of employment – 1 month's notice
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