Overview

Capital
Helsinki
Currency
Euro (EUR)
Date Format
dd/mm/yyyy

Taxes

Employer

Employer Payroll Tax

16.95% average TyEL contribution
Pension Insurance
1.53%
Health Insurance
0.05% (1.90% For the part of the salary amount that exceeds € 2,169,000 / year)
Unemployment Insurance
Based on salary and job risk
Accident insurance premium
Varies by industry and company
Group life insurance premium (f it is so agreed in the collective labour agreement )
Up to 27.22% Total Employment Cost
Employee

Employee Payroll Taxes

7.15% (8.65% of the employee is between 53-62)
Pension Insurance (Average)
0.68% (1.86% for salary above 14,766 EUR)
Health Insurance
1.40%
Unemployment Insurance
Up to 11.91% Total Employee Cost

Employee Income Tax

0.00%
Up to 18,600
6.00%
18,600 - 27,900
17.25%
27,900 - 45,900
21.25%
454,90 - 80,500
31.25%
Over 80,500
Employer Taxes
3 HIGHEST
3 LOWEST
Brazil
China
Slovakia
Finland
South Africa
Georgia
Macedonia
82.39%
41.12%
37.2%
27.22%
2%
2%
0%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Macedonia
Netherlands
Finland
Georgia
Belarus
Ukraine
45%
28%
27.65%
11.91%
2%
1%
0%

Minimum Wage

General

No official minimum wage.

Payroll

Payroll Cycle

The payroll cycle is monthly and wages are paid at the end of the month.

13th Salary

There are no provisions in the law regarding 13th salaries.

Working Hours

General

A full-time workweek ios 40 hours, or 8 hours per day.

Overtime

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.

 

  

Leave

Paid Time Off

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.

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Albania
Finland
Michigan
China
Federal
30
13
43
30
12
42
28
14
42
24
10
34
2
11
13
5
7
12
10
10
Public Holidays

There are 10 public holidays.

Sick Days

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.

Maternity Leave

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.

PAID MATERNITY LEAVE (DAYS)
410
365
365
105
45
30
0
Bulgaria
Serbia
Albania
Finland
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity 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.

 

Parental Leave

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.

Termination

Termination Process

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

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
Severance Pay

There is no statutory severance pay unless the employee’s termination is unjustified, or the employer has decided voluntarily to provide it.

Probation Period

6 months

VISA

VISA

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.

VAT

General

24% standard rate.

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