Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Finland. Traditional methods of establishing global employment and subsidiaries in Finland typically take months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services help hundreds of organisations onboard new employees in Finland in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process.
Income taxes in Finland are high, with average totals being between 8.6 and 56.5%. Progressive municipal taxes, sitting around 20.2% on the high end, contribute significantly to this rate.
Additional deductions for pensions and unemployment insurance are made on top of this.
The payroll cycle in Finland is monthly, with wages being paid at the end of the month.
A combination of health, unemployment, pension, and accident insurances make up the majority of the employer’s payroll costs. This total cost can be as high as 21.5%.
Employees similarly contribute to these insurances. Employees can expect to pay:
The typical work week in Finland consists of 40 hours per week, typically spread over 5 days of 8-hour shifts.
It’s important to note that typical working hours can vary by industry in some countries. Contact our team for the most up-to-date information!
In Finland, overtime is only available with the employee’s consent, which must be obtained each time overtime work is performed. Employees must be paid 1.5 times their salary wage for the first two hours of overtime worked each day, and 2 times their salary wage for any additional overtime worked that day.
Generally, overtime laws in Finland are complex and can depend on the specific circumstances and the employee. We are happy to discuss this in more detail for a specific context.
Finland has an annual leave entitlement of 5 weeks per year, plus 13 public holidays.
After one month of service, employees are entitled to up to 9 days of paid sick leave, covered by the employer. After 10 days of illness, the employee may be eligible for a sickness allowance from the state.
Employers may grant additional unpaid sick leave at their discretion.
Finland’s maternity leave regulations include 105 days of leave, excluding Saturdays, beginning 30-55 days prior to birth. Employers aren’t obligated to pay the employee during this leave, although stipulations for payment may be imposed in collective agreements.
The Finnish Social Insurance Institution grants employees earnings-related allowances during maternity and parental leave.
Paternity leave in Finland includes up to 54 days of leave. 18 days of this leave may be taken during the mother’s leave. Paternity leave in Finland may be divided into smaller parts and taken after maternity and parental leave; however, the full 54 days must be taken before the child’s second birthday.
The father is similarly eligible for earnings-related allowances from the Finnish Social Insurance Institution during their leave.
It’s common for Northern European countries to allow full-time unpaid childcare leave from the end of maternity leave until the child is aged 3. Finland offers up to 158 days of parental leave following maternity and paternity leave. This leave can be shared between the mother and father, although leave can only be taken by one person with custody of the child at a time.
Additionally, parents have the right to take partial childcare leave (reduced working hours) until the end of the child’s second year of basic education.
The Finnish Social Insurance Institution provides an allowance to employees taking parental leave.
Finland also offers leave for adoptive parents and family leave:
We believe that remote employees should be able to access their local benefits, as well as high-standard international benefits, anywhere they are. Details about international or country specific benefit packages can be provided on request. Please contact us for further details.
Severance is not typically required in Finland, unless in case of redundancy. However, other payments may be required in certain specific circumstances. Please contact us with any questions.
Unless specified in the employment contract, the necessary length of notice employers are required to give in Finland depends on the length of the employee’s service:
Finland law protects employees from illegal termination of employment, and as there are a range of reasons an employee can be terminated, it’s important for those looking to employ in Finland to reach out to us directly with questions.
Laws around employees who have specific termination protections, or classes of employees who have protected characteristics relevant to discrimination, are highly complex and there can be a number of situation-specific variables. If you have questions in this area, please reach out to us directly to discuss.
The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in Finland are strict with penalties for non-compliance. Let our team take care of the details such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We’re here to help you every step of the way.
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