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Euro is the official currency of Finland, its currency symbol is €, EUR.
Estimated at 21% of employees salary
Finnish is the official language of Finland
The population of Finland is 5.5 million
Employees are paid monthly in Finland
To start growing your team in Finland, you must establish a local entity – including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months. Emerald can hire and payroll your workers quickly and compliantly with their ‘ready to go’ entity. Make growing your team simple with Emerald as a global partner.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Hiring in Finland presents several advantages and disadvantages. On the positive side, Finland offers a highly educated and skilled workforce, renowned for its strong work ethic and proficiency in technology and innovation. The country also provides a stable business environment with transparent regulations and a high quality of life, which can attract top talent. Additionally, the Finnish social security and healthcare systems ensure that employees are well-supported, contributing to higher productivity and job satisfaction. However, there are some challenges to consider. The overall cost of hiring in Finland can be relatively high due to competitive salaries and substantial employer contributions to social security. The country’s tax rates, while progressive, may also affect net income for employees, potentially impacting salary negotiations. Additionally, Finland’s strict labour laws and robust employee protections can make terminating employment more complex and costly. Despite these challenges, the benefits of a highly capable workforce and a supportive business environment can outweigh the potential downsides for many employers.
Employers should consider hiring remotely in Finland for several compelling reasons. Finland boasts a highly educated and skilled workforce, particularly strong in technology, engineering, and innovation, making it an excellent source of top-tier talent. The country’s robust digital infrastructure ensures that remote employees have reliable access to high-speed internet and the latest technology tools, facilitating seamless remote collaboration. Finnish employees are known for their strong work ethic, proficiency in multiple languages, and a high degree of professionalism, which can significantly enhance productivity and integration into international teams. Additionally, Finland’s stable economic and political environment provides a reliable and secure backdrop for business operations. In Finland, employees are entitled to a range of mandatory benefits designed to ensure their well-being and financial security. Here are the key mandatory benefits:
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| Health Insurance Contribution: | 1.34% of gross salary |
| Pension Insurance (TyEL): | 17.39% of gross salary |
| Unemployment Insurance: | 0.50% of gross salary |
| Accident Insurance: | Varies by industry, generally around 0.4%-3% of gross salary, but for simplicity, let's use an average of 1.2% |
| Group Life Insurance: | 0.06% of gross salary |
Health Insurance
Pension Insurance
Accident Insurance
Group Life Insurance
Unemployment Insurance
Public Holidays
Family Leave
Occupational Health Services
Probation periods are commonplace in Finland. They vary in length but must not exceed 6 months.
Emerald Technology can onboard employees in Finland within 48 hours.
Non-Compete Clauses:
Purpose: Prevent employees from working for competitors or starting a similar business.
Duration: Usually up to 6 months without extra pay, up to 1 year with compensation (at least 50% of salary).
Non-Solicitation Clauses:
Purpose: Stop employees from approaching the employer’s clients or staff.
Duration: Typically, up to 12 months.
Non-Disclosure Agreements (NDAs):
Purpose: Protect confidential information.
Duration: Often extends beyond the end of employment.
Non-Poaching Agreements:
Purpose: Prevent former employees from recruiting the employer’s staff.
Duration: Reasonable and clearly defined.”
Health Insurance is provided to all residents by the Finnish National Health Insurance, funded by taxation. However, non-residents may also qualify for coverage if they meet a specific criteria, such as paying social security contributions. Employers contribute a small amount towards social security, while employees contribute a small percentage of their income through taxation.
Employers are required to provide social security contributions on behalf of their employees to cover health coverage, pension insurance, unemployment insurance, accident insurance, and Group Life insurance. This equates to around 16-18% for pensions and 1.53% for health insurance. Employees also contribute towards social security through taxation, automatically deducted from their salary, which is around 8% for pension and 1.53% for health insurance.
Typically lasts 105 days starting between 30 and 50 days before birth. Mothers receive a maternity allowance from Kela (the Finnish Social Institution) for the full duration of their leave. Job protection is ensured during this period.
Paternity leave lasts up to 54 days, before or after birth, and is paid by Kela.
Parental leave is 320 days divided between the parents, to allow time to care for the child, financially aided by Kela.
Employees are entitled to paid sick leave, with the company having to pay the full salary for the first 9 days. Beyond this, Kela will cover a percentage of the employee’s salary.
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:
| Length of service | Notice Period |
| < 1 year | 14 days |
| 1-4 years | 1 month |
| 4-8 years | 2 months |
| 8-12 years | 4 months |
| > 12 years | 6 months |
If an employee is made redundant, they are entitled to a payment based on years of continuous service.
| Severance pay is not mandatory in Finland but may be provided if agreed contractually. | |
Employees are entitled to a minimum of 24 days of paid annual leave after one year of employment. The leave accrual can increase based on the duration of employment.
New Year’s Day
Epiphany
Good Friday
Easter Sunday
Easter Monday
May Day
Ascension Day
Whit Sunday
Midsummer’s Eve
Midsummer Day
Saints’ Day
Independence Day
Christmas Eve
Christmas Day
2nd Day of Christmas
There is no statutory minimum wage in Finland.
The average working week is between 37.5 and 40 hours.
Employees can work overtime, with consent, to take their working week up to a maximum of 48 hours. For the first two hours of overtime, the employee should receive 150% of their regular pay, and 200% for anything beyond that.
Employees are paid monthly
13th-month salary payments are customary in Finland and are usually paid before the employee’s holiday.
Income Range Tax Rate
Up to €19,800 0%
€19,800 – €30,600 6%
€30,600 – €45,600 17.25%
Over €45,600. 21.25%”
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