Overview

Capital
Helsinki
Currency
Euro
Date Format
dd/mm/yyyy

Taxes

Employer
1.34% - Health Insurance
25.30% - Pension Insurance
0.45% for wages under u20ac2,125,500 a year or 1.70% wages over u20ac2,125,500 a year - Unemployment Insurance
0.8% on average - Accident insurance premium
0.07% on average - Group life insurance premium (f it is so agreed in the collective labour agreement )
Employee
1.86% for salary above 14,574 EUR (0.68% for salaries under) - Health Insurance
7.15% (8.65% of the employee is between 53-62) - Pension Insurance (Average)
1.25% - Unemployment Insurance
0.00% - Up to 17,200
6.00% - 17,200 - 25,700
17.25% - 25,700 - 42,400
21.25% - 42,400 - 74,200
31.25% - Over 74,200

Minimum Wage

General

No official minimum wage.

Working Hours

General

Full time employment is considered 40 hours weekely, and 8 hours daily.

Overtime

Overtime is paid at 150% for the first two hours, and 10% for the following hours.

VAT

General

24% standard rate. There are however items given a discount rate. - 14% for agricultural products - 10% for pharmaceutical products, print, transportation and entertainment.

Mandatory Benefits

Pension Fund

Finland's pension system is based off of two schemes: 1. The national public pension plan 2. A compulsory occupational pension scheme (also refereed to as earnings related pension scheme). In the national public plan, up to 20% of average wages in Finland are contributed. Employers contribute 17.75% of workers wages to the earnings related pension scheme. Employees contribute 6.35% of their wages to the earning related pension scheme until 53, at which point contributions raise to 7.85%.

Social Security

The average monthly contribution is 18% of monthly payroll. The minimum monthly earnings used to calculate contributions are €57.51. There are no maximum earnings used to calculate contributions.

Vacation Pay

50 percent is paid in February, and 50 percent is paid in July.

Payroll

Payroll Cycle

The frequency at which companies choose to pay their workers can be any of the following: monthly, semi-monthly or bi-monthly. Payment is typically between the 25th-30th.

Termination

Termination Process

Aside from situations of sever misconduct, employees must be given a warning and the opportunity to change their behavior before termination. Once termination is final, employers must provide the following notice to employees: * 14 days: 0-1 year employed * 1 month: 1-4 years employed * 2 months: 4-8 years employed * 4 months: 8-12 years employed * 6 months: over 12 years employed.

Advance Notice

For the first 5 years of employment workers are expected to provide 14 days of notice. Following the 5th year, employees are expected to provide one month notice before terminating employment.

Severance Pay

Severance payment isn't regulated in Finland outside of state offices, unless employee is over 45 and re-employment is considered difficult, in which case employee is entited to severance from a public fund typically equiling 1,500 EUR.