Employers in Finland are required by law to provide a payslip (palkkalaskelma) for each pay period. While the format can vary, it must include specific details to comply with regulations. Finnish payslips are typically divided into three main sections:
- Header Section – General information about the employer and employee.
- Middle Section – Breakdown of earnings, deductions, and contributions.
- Footer Section – Net salary, cumulative figures, and additional information.
Header Section of the Payslip
The header provides key details about the employer, employee, and pay period. Common elements include:
- Employer Information: Name, address, and Business ID (Y-tunnus).
- Employee Information: Name, address, payroll ID, and position.
- Payroll Period: The time frame for which the salary applies.
- Tax Information: Employee’s tax card details, withholding percentage, and applicable tax code.
- Work Details: Contractual hours, overtime, and leave during the payroll period.
Middle Section of the Payslip
The middle section contains a detailed breakdown of earnings, deductions, and employer contributions:
Gross Earnings:
- Base Salary (Peruspalkka): The fixed monthly or hourly wage.
- Overtime Pay (Ylityökorvaus): Compensation for hours worked beyond the agreed terms.
- Allowances (Lisät): Travel, meal, or evening shift allowances.
- Bonuses (Bonukset): Performance-based or annual bonuses, if applicable.
Deductions:
- Income Tax (Tulovero): Withholding based on the employee’s tax card.
- Employee Contributions: Pension contributions (Työeläkemaksu), unemployment insurance (Työttömyysvakuutusmaksu), and health insurance contributions (Sairausvakuutusmaksu).
Employer Contributions:
- Pension Contributions (TyEL): Employer-paid contributions to the earnings-related pension system.
- Social Security Contributions: Supporting unemployment benefits and other statutory programs.
- Occupational Accident Insurance: Mandatory insurance for workplace safety.
Footer Section of the Payslip
The footer section summarizes the payroll details and provides additional information:
- Net Salary (Nettopalkka): The take-home pay after taxes and deductions.
- Cumulative Totals: Year-to-date figures for gross salary, taxes, and contributions.
- Leave Balances (Vuosilomapäivät): Accrued, used, and remaining vacation days.
- Additional Notes: One-time payments, corrections, or other relevant information.
Why Understanding the Finnish Payslip Matters
Employees benefit from understanding their payslips to ensure they receive accurate pay, while employers must maintain compliance with Finnish labor and tax laws. Misunderstandings or errors can lead to payroll disputes, financial penalties, or employee dissatisfaction, emphasizing the importance of clear payroll management.
Explore More About Payroll in Finland
For additional insights, check out our blogs on related topics:
You can also find official resources at the Finnish Tax Administration (Verohallinto) and the Finnish Centre for Pensions (Eläketurvakeskus).
Need Help with Finnish Payroll?
Internago specializes in payroll services across European markets, including Finland. From payroll outsourcing to HR management, we ensure compliance with local regulations and streamline your payroll processes so you can focus on growing your business.
Ready to get started? Visit our website or contact us at info@internago.com and contact us at info@internago.com.