Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
No official minimum wage.
The payroll cycle is monthly and wages are paid at the end of the month.
There are no provisions in the law regarding 13th salaries.
A full-time workweek ios 40 hours, or 8 hours per day.
Overtime work requires the employee’s consent for each overtime period, and to be considered overtime, must be under the employer’s initiative and approval. Overtime hours cannot exceed 138 hours over a 4-month period and 250 hours annually. Additional 80 hours of overtime may be agreed upon if it is necessary.
Overtime increases pay to the rate of 150% of the regular pay for the first two hours and 200% for the following hours. Weekly overtime is paid at the rate of 150% of the regular pay. Any work performed on Sunday is compensated at 200%.
Overtime pay can differ depending on collective agreements.
Annual leave is calculated from the period of April 1st through March 31st of the following year. Vacation is typically taken between May 2 -September 30 (4 weeks in the summer and 1 week in the winter).
Employees earn 2 vacation days per month or 2.5 days per month for continuous employment of over a year. Employees who have at least 15 years of service receive 3 vacation days per month.
There are 10 public holidays.
Employees who have been employed for at least a month receive full sick pay for 9 working days. After the 9 days, the employee must provide a medical certificate from a doctor.
Pregnant employees are allowed to choose when maternity leave begins with a maximum of 50 days before the expected due date. Once maternity leave begins, the employee receives benefits for 105 working days (Monday-Saturday, excluding holidays).
The employee must notify the employer and apply for maternity pay at least 2 months before starting maternity leave.
Fathers are given 54 days of paternity leave, with a maximum of 18 days to be used at the same time as the mother. The remaining days are to be taken in more than two periods.
Both parents are allowed to take parental leave with benefits up to 158 days and ends when the child is approximately 9 months old. Parents are to agree when each takes the leave since it cannot be taken by both simultaneously.
An employer must provide valid reasoning for the termination of an employee. If an employee has performed poorly, the employer must first receive a warning and an opportunity to improve before being terminated.
An employee must provide written notice to the employer and honor the notice period before ending work.
Fixed-term employment cannot be terminated.
Notice period when the employer initiates the termination:
- Up to one-year employment – 14 days’ notice
- One to four years of employment – one months’ notice
- Four to eight years of employment – two months’ notice
- Eight to 12 years of employment – four months’ notice
- Over 12 years of employment – six months’ notice
Notice period when employee initiates the termination:
- One to 5 years of employment – 14 days’ notice
- More than 5 years of employment – 1-month notice
There is no statutory severance pay unless the employee’s termination is unjustified, or the employer has decided voluntarily to provide it.
In Finland, there are a variety of visas depending on the applicant’s profession. In the majority of cases, an employment contract is a minimum requirement to begin the process of obtaining a work visa. In addition, one may be required to apply for a residence permit as well, depending on the type of work the applicant plans on conducting. In addition, the salary received must be deemed enough to support the visa holder during their stay in Finland. There are some permits that allow the visa holder to change between jobs, and usually are when the individual gets a new job in the same field of work.
Residence permit for an employed person (TTOL): The applicant must have a signed employment contract. If they are coming to work from a different country, a residence permit must be applied for as well. Once all the required forms are filled out properly, the processing time can take anywhere between 3-8 months.
EU Blue Card: The EU Blue Card is for non-European Union citizens who are highly skilled workers with higher education degrees and allows the holder to work in any EU country. The applicant must have a job offer that’s duration is at least 1 year and must be offered earnings over a certain threshold. The EU Blue Card provides both residence and work permit valid for 2 years.
The EU Blue Card applies to all EU member states with the exception of Denmark and Ireland.
24% standard rate.