Country facts
The Republic of Finland. It is a member of the UN, the OECD, the EU and the Eurozone, as well as being involved in the NATO partnership for peace and the Euro-atlantic partnership council.
Finland’s nominal GDP is 277 billion dollars, making it the world’s 43rd largest economy. It’s Human Development Index is at 0.931, which ranks as very high, with a global ranking of 11th. Finland is a regular top performer in metrics of national performers. For example, between 2011-2015 they were ranked as the most stable country in the world in the Fragile State Index and since 2018 they have continually been ranked as the happiest country in the world.
Capital
Helsinki
Currency
Euro (EUR)
Languages spoken
Finnish, Swedish
Population size (2020)
5,53 million
Ease of doing business (world bank ranking)
20
Cost of living index(2021)
77,46
Payroll frequency
Monthly
VAT – standard rate
24%
GDP – real growth rate(2020)
-2,87%
Employing in Finland
Employing in Finland comes with a variety of rights and obligations for the employer.
The employer’s obligations are in general about maintaining a healthy workplace environment, equality and the general well-being of the employee. These are informed through collective agreements and legislation.
When dealing with Finnish authorities, in certain instances official documents must be written in one of Finland’s official languages (Finnish or Swedish).
If an employee does not have a written contract (which is not obligatory, although customary), the employer must still describe in writing his/her employment terms. This writing must include:
- Main work duties
- Duration of contract if fixed-term
- Probationary period (if applicable)
- What collective agreement applies
- Salary and pay terms
- Working hours and holidays
- Notice period
The employer must provide statutory insurance for its employees and pay for such insurances. (This includes employment pension insurance, accident insurance, group life insurance, unemployment insurance contribution, and social insurance premium.)
The employer must also provide an “annual wage slip” which details the sum of salary paid over the year as well as related taxes. In addition to this the employer must also inform the tax administration about their payroll on a monthly and annual basis. Finally employers must pay for employees occupational healthcare.
List of Public Holidays - 2024
| Date | Holiday Name |
|---|---|
| 1 January | New Years Day |
| 6 Januray | Epiphany |
| 29 Mars | Good Friday |
| 31 Mars | Easter Sunday |
| 1 April | Easter Monday |
| 1 May | Labour Day |
| 9 May | Ascension day |
| 19 May | Whit Sunday |
| 21 June | Midsummer Eve |
| 22 June | Midsummer Day |
| 2 November | All Saints Day |
| 6 December | Independence Day |
| 24 December | Christmas Eve |
| 25 December | Christmas Day |
| 26 December | 2nd Day of Christmas |
Minimum wage
There is no minimum wage in Finland. Collective agreements cover most employees which specifies the minimum pay rates for various sectors. The employer must give the employee a calculation which indicates the amount of pay the grounds for determination.
Salary payouts
Finland has a monthly payroll frequency, usually paid on the last day of each month. There is also a 13th month salary payout, which is usually paid out before the employee’s holiday.
A standard workweek in Finland is 8 hours a day and 40 hours a week. All working hours that exceed this number are to be paid as overtime and are regulated by the employment contract/collective agreements. It must also be mutually agreed upon before the commencement of any overtime working hours. 138 overtime hours over a four month period (and 250 hours annually) is usually the maximum limit. The first two hours are usually paid at 150% of the regular salary rate and 200% for subsequent hours. Overtime work on weekends/sundays/rest days are paid at 200%.
Taxes in Finland
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Finland.
Employer
Corporate income tax rate: 20%
Pension insurance: 16,95%
Health insurance: 1,53%
Unemployment insurance: 0,05% (1,90% for the part of the salary amount that exceeds 2,169,000 EUR per year)
Total cost for employer: 18,53% to 20,38%
Employee
Pension insurance : 7,15% (8,65% if the employee is between 53-62 years old)
Health insurance : 0,68% (1,86% for salary above 14,766 euro)
Unemployment insurance : 1,40%
Total cost for employee : 9,59% to 10,73%
About Internago
Internago offers subsidiary management, HR and international payroll services combined with international payroll software and professional business advisory services.