Currency: Euro (EUR)

Capital: Helsinki

Official language: Finnish and Swedish

Payroll Cycle: Monthly

Paid Time Off

In Finland, employees are entitled to 30 days of paid holiday a year.

Public Holidays

• New Year’s day
• Epiphany
• 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 individual income tax depends on many variables, such as marital status, level of income, etc. The average ranges up to 31.25%

Employer Tax

Approx. 20.5% of 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.

Probation Period

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 five days a week, though some flexibility is allowed for certain sectors and undertakings.

Bonus and expense payments

Collective agreements often provide for a holiday bonus amounting to 50% of the total annual holiday pay. Generally, employers will pay this bonus either before or after the annual holiday is taken.

Parental Leave

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.

Sick 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 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.

‍Notice period

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