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Talent Wiki – Finland

Your quick guide on talent and labor compliance norms in Finland

Capital

Helsinki

Currency

Euro (EUR)

Languages

Finnish, Swedish, English

Payroll Frequency

Monthly

GDP per Capita

$55,957.47

Employer Tax

20.07% - 21.61%

Talent Overview

Finland has consistently ranked at the top position in the World Happiness Report since 2018. The Nordic country offers its people countless parental leaves, supports the unemployed, and free healthcare and education for all. Small and medium businesses employ a vast majority of the Finnish population. The country’s main exports are paper, machinery, oil, and vehicles.

Major economic hubs:

Helsinki, Espoo, Tampere, Vantaa

Skills in demand:

Software engineers, Nursing professionals, Educators.

Map 10

Local Universities

The top local universities in Finland are as follows:

Uni1 20

Helsingin yliopisto (University of Helsinki)

Ranking

Local: 1

World: 119

Uni2 19

Tampereen yliopisto (Tampere University)

Ranking

Local: 2

World: 191

Uni3 20

Aalto-yliopisto (Aalto University)

Ranking

Local: 3

World: 229

Uni4 18

Jyväskylän yliopisto (University of Jyväskylä)

Ranking

Local: 4

World: 472

Uni5 18

Turun yliopisto (University of Turku)

Ranking

Local: 5

World: 489

Salary Data

Some of the top jobs and their corresponding monthly salaries are as follows:

Job Description Average Monthly Salary (EUR) Average Monthly Salary (USD)
Accounting manager 6,980  7,825
Financial analyst 5,790 6,491
Office manager 4,150  4,653 
Graphic designer 2,840 3,184
Business Development Manager 7,360 8,251 
Developer/Programmer 4,470 5,011 
Talentsource 49

Talent Sourcing Tips

Top Local Job Boards

TipTop Job, Duunitori, Te Palvelut

Number of LinkedIn users

1,719,000

Multiplier Recruitment Partner

iXceed

Employing in Finland

Collective agreements form the basis of Finnish labor laws. All employees working in Finland, irrespective of their nationalities, are covered under Finland’s labor and occupational safety legislation.

Employee Contract

Finland’s official languages are Finnish and Swedish. However, employment contracts may be in any language understood by the employee.

Probation period

The usual probationary period followed in Finland is from one to six months.

Public and Provincial Holidays

Date Name Type
1 Jan New Year’s Day National holiday
6 Jan Epiphany National holiday
29 Mar Good Friday National holiday
31 Mar Easter Sunday National holiday
1 Apr Easter Monday National holiday
1 May May Day National holiday
9 May Ascension Day National holiday
22 Jun Midsummer National holiday
2 Nov All Saints’ Day National holiday
6 Dec Independence Day National holiday
24 Dec Christmas Eve De facto and Bank holiday
25 Dec Christmas Day National holiday
26 Dec Boxing Day National holiday

Employee Leaves

Type of leave Time Period Mandatory
Annual leave/Earned Leave  24 days Yes
Sick Leave 10 days Yes
Maternity Leave 18 weeks Yes

Payroll

Payroll 1

Payroll Cycle

The employee must be paid monthly or bi-monthly per the collective agreement.

Payroll 2

Minimum Wage

There is no statutory minimum wage followed in Finland.

Payroll 3

Overtime Pay

The standard working hours in Finland are 8 hours a day and 40 hours a week. The overtime pay is compensated as per the table below:

Bonus

13th Month Pay

There is no specific legal provision for a 13th-month salary in Finland, but they are customary and are paid before the holidays.

Employee Benefits

  • Holiday bonus
  • Maternity leaves
  • Paternity leave
  • Equity stock options

Taxes

Employer Payroll Tax

Category Rate
Health/Sickness Insurance 1.53%
Pension Insurance 17.39%
Unemployment Insurance 0.52% for first EUR 2,197,500 and 2.06% afterward
Group Life insurance 0.06%
Accident Insurance Premium 0.57%
Total 20.07% – 21.61%

‍Employee Payroll Tax

Category Rate
Pension Insurance 7.15% (If below 53 years) or 8.65%
Health/Sickness Insurance 1.96%
Unemployment Insurance 1.50%
Total 10.61 % – 12.11%

Employee Income Tax

Taxable income (EUR) Tax on column 1 (EUR) Tax on excess (%)
0 – 19,900 0 12.64
19,900 – 29,700 2,515 19.00
29,700 – 49,000 4,377 30.25
49,000 – 85,800 10,215 34.00
85,800 and above 22,727 44.00

Capital (investment) income is taxed at 30% and 34%.

VAT

A standard rate of 24% is followed in Finland.

Offboarding & Termination

Termination in Finland can be done on a mutual consent basis. An employer in Finland may terminate the employment contract of a regular employee for redundancy or any other reasons. An employee can terminate the employment contract without giving any reason to the employer. Upon completion of the employment, employees are entitled to a written certificate on request.

The notice period for employees during the probationary period is from 14 days to 30 days, while for permanent employees, it ranges from 14 days to 180 days.

Employees in Finland are not entitled to severance pay unless expressed in the agreement.

Visa and Immigration

Nationals of the EU countries and nationals of countries that belong to the European Economic Area may work in Finland without a residence permit. Other nationals must have a residence permit and a work permit to work in Finland.

Visa 49
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Payroll

Minimum Wage

Overtime Pay

Overtime Period Overtime Pay
First 2 hours 50% premium
After the frst 2 hours 100% premium
Rest day / Sunday 200% of the regular hourly wage

Visa & Immigration