Finland is known as the “Land of a Thousand Lakes” because it is home to approximately 188,000 lakes, making it the country with the most lakes in the world.
Payroll and Benefits Guide - Finland
Fun Facts
The sauna is an integral part of Finnish culture. There are over 3 million saunas in Finland, which is more than the total population of the country.
The Santa Claus Village is located in Rovaniemi, Finland. It is a popular tourist destination and considered the official home of Santa Claus.
Finland consistently ranks as one of the countries with the highest per capita coffee consumption in the world.
Finland is known for its design and architecture.
Finland has been ranked as one of the happiest countries in the world.
Contributions
Employee Payroll Tax
| Pension Insurance | 7.15% |
| Health Insurance | 1.96% |
| Unemployment Insurance | 1.50% |
Employer Payroll Tax
| Pension Insurance | 25.55% |
| Health Insurance | 1.53% |
| Unemployment Insurance | 0.52% |
| Accident insurance premium | Based on salary and job risk |
| Group life insurance premium | Varies by industry and company |
Payroll
Payroll Cycle
In Finland, wages are normally paid on the last day of each month on a monthly basis.
13th Salary
In Finland, 13th-month salary payments are traditional and typically made before to the employee’s vacation.
Work Hours and Week
Depending on the employment and CBA, the working hours range from 37.5 to 40 hours per week.
Overtime
All hours worked that are over the weekly minimum must be compensated as overtime and must follow the terms of the employment contract, collective bargaining agreements, etc.
Leave
Paid Time Off
Vacation time is normally utilized between May 2 and September 30. Annual leave is calculated between April 1 and March 31. Up to one year of continuous employment, employees are entitled to two vacation days per month or 2.5 days per month; beyond that, they are entitled to four weeks of leave annually.
Public Holidays
There are 10 public holidays in Finalnd.
Sick Days
Despite the fact that the length of sick leave is dependent on the CBA in place, employers are compelled to pay for it. It is 4 weeks of compensation for less than 3 years of employment for the bulk of CBA.
Maternity Leave
An employee who is pregnant is eligible for 105 days of maternity leave. If it is possible to work during maternity leave without endangering the wellbeing of the mother, fetus, or kid, then it is permissible.
Paternity Leave
Paternity leave in Finland may last up to 54 days. In addition to the mother of the kid, fathers can chose to spend up to 18 days at home with the child before deciding when to take the remaining 36 days.
Parental Leave
The 158-day parental leave period. For a minimum of 12 working days and up to two leave periods, both parents may take full-time parental leave.
Termination
Termination Process
The method of termination varies depending on the type of contract and the cause for termination, as well as how the employment agreement and collective agreement are in place.
Notice Period
The Employment Contracts Act, which states that the employer and employee may agree on the durations of notice not to exceed six months, is followed in determining the notice period. Notice periods may be covered by clauses in collective agreements.
Severance Pay
Although severance pay may be agreed in the employment contract, it is not a requirement in Finland.
Probation Period
Probation Period
In Finland, the probation period is limited to six months.
Immigration
A permission from the National Board of Patents and Registration may also be required for individuals residing outside of the European Economic Area (EEA) in order to hold managerial positions or perform other duties in a firm.
VAT
In Finland, the usual VAT rate is 24.00%.