Finland

Finland

Global Employment Solutions & PEO in Finland

Omnipresent makes it fast and easy to employ remote talent in Finland. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.

OmniAtlas Employment Rating

Capital City
Helsinki
Currency
Euro
Native Language
Finnish, Swedish
Payroll Frequency
Monthly
Employee Protections
Strict
Employment Costs
High
Termination
Easy
Immigration
Difficult
Cost of Living
Moderate
Population
5.5 Million

What You Need to Know About Employing in the Finland

Don’t risk non-compliance with local employment, social insurance, and tax regulations.

How it works
Payroll & Taxes
Employer Costs
Working Hours
Holidays & Vacation
Types of Leave
Health & Benefits
Termination Laws
Finland

How Do Omnipresent Global Employment Solutions Work?

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. 

  • Your company conducts the hiring and candidate selection process in Finland.
  • Omnipresent hires the selected candidate through our local professional employment organisation in Finland.
  • We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Finland.
  • The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.
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Payroll & Taxes in Finland

Employee Income Taxes:

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. 

Payroll Cycle:

The payroll cycle in Finland is monthly, with wages being paid at the end of the month.

Finland

Employer Costs in Finland

Employer Contributions:

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%. 

Employee Contributions:

Employees similarly contribute to these insurances. Employees can expect to pay:

  • Health insurance: 1.36% for salaries above 14,766 EUR, plus 0.68% for all salaries. 
  • Pension insurance: 7.15% (8.65% if the employee is between ages 53-62). 
  • Unemployment Insurance: 1.4%
Finland

Working Hours in Finland

Typical Working Hours per Week:

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!

Overtime Laws:

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

Public Holidays & Vacation Time in Finland

Standard Public Holidays in Finland

  • New Year’s Day
  • Epiphany
  • Good Friday
  • Second Easter Day
  • Vappu
  • Ascension Day
  • Midsummer Eve
  • Midsummer Day
  • All Saints’ Day Saturday between October 31 and November 6
  • Independence Day
  • Christmas Eve
  • Christmas Day
  • St. Stephen’s Day

Vacation Time in Finland

Finland has an annual leave entitlement of 5 weeks per year, plus 13 public holidays.

Finland

Types of Leave in Finland

Sick Leave:

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. 

Maternity Leave:

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:

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. 

Unpaid Childcare 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. 

Other Types of Leave:

Finland also offers leave for adoptive parents and family leave:

  • Adoptive parents of children under the age of 7 are entitled to 200 days parental leave from the date of adoption, or 234 days from birth, whichever is longer. Like non-adoptive parents, adoptive parent's paternity leave must be taken during the 2 years following the date the child is taken into care.
  • Employees are also entitled to temporary absences from work if needed due to unforeseeable and compelling reasons, such as  illnesses or accidents suffered by family members.
Finland

Health Insurance & Supplementary Benefits in Finland

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.

Finland

Termination & Severance in Finland

Severance:

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.

Notice of Termination:

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:

  • Less than one year: 14 days
  • 1-4 years: 1 month
  • 4-8 years: 2 months
  • 8-12 years: 4 months
  • 12+ years: 6 months

Unprotected and Protected Termination

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.

Protected Classes of Employees:

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.

Finland

Grow Your GlobalTeam. 

Employ the Best Talent, Anywhere in the World.

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.

Want to onboard an international employee today? Call us.

Join thousands of companies who are leading the way and employing remote teams all over the world.

Omnipresent makes it easy to employ, pay and support your international team.

Book a call with us to start building your global team today.

Employ Anywhere. Be Omnipresent.  

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