Payroll and Benefits Guide - Finland

Finland
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Currency

Euro (EUR)
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Capital

Helsinki
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Employer Taxes

27.60% to 29.14%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

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.

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.

Finland

Contributions

Employee Payroll Tax

Pension Insurance7.15%
Health Insurance1.96%
Unemployment Insurance1.50%

Employer Payroll Tax

Pension Insurance25.55%
Health Insurance1.53%
Unemployment Insurance0.52%
Accident insurance premiumBased on salary and job risk
Group life insurance premiumVaries 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.

Finland

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%.