Finland offers a highly educated, English-fluent workforce with collective-agreement pay floors and a strong pension system. All-in employer cost runs around 1.2x the gross salary. Here is what to know before your first Finnish hire.
Employment runs under the Employment Contracts Act and, for most sectors, a collective agreement that sets pay and conditions. There is no statutory minimum wage; the employer earnings-related pension (TyEL) is the largest single cost.
There is no statutory minimum wage. Pay floors are set by sector collective agreements*.
Monthly payroll. Many agreements add a holiday bonus (lomaraha), often around half of holiday pay.
Around 11 public holidays a year, several tied to the church calendar.
Written terms are standard. Probation can run up to six months, with immediate termination allowed for a valid reason during it.
Employer costs sit around 20%, dominated by the earnings-related pension contribution plus health, unemployment, and accident insurance.
The TyEL pension contribution is by far the largest employer cost and is administered through a pension insurer.
Employees pay their pension and unemployment share plus municipal and state income tax, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
Two to two and a half days of paid leave per month, giving 24 to 30 days a year by tenure, often with a holiday bonus.
Reformed parental leave gives parents a shared quota of around 320 days, paid through the social-insurance system (Kela).
The employer typically pays full salary for the first days or weeks of illness, after which Kela sickness allowance applies.
Study leave and job-alternation leave are available under statute.
Termination needs proper grounds (individual or financial). Notice runs from 14 days up to six months by tenure.
There is no general statutory severance; obligations come through notice pay and any agreement-based support.
Up to six months, during which the contract can end for a valid reason without notice.
A contractor working like an employee can be reclassified, with back pension and contributions.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Finnish employment contract, payroll, pension, and benefits, handled. One invoice, flat $399 per month.