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hire in Finland

Finland PEO &
Employer of Record

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES Finnish / English

PAYROLL TAX 27.96% – 29.24%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

Hire and pay talents
with Horizons in
180+ countries

Simple, compliant hiring with Horizons PEO

Hire in Finland

Horizons provides compliance solutions to ensure your business in Finland operates in line with Finland labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, Finland in a range of industries, from customer service, to accounting services, to software development.

We also process monthly payroll, and, as a Finland Employer of Record, absorb all local employer liabilities. Partnering with our Finland PEO is the quickest and most cost-effective way to enter the Finland market.

Facts & Stats

PEO Platform Hire in Finland, and pay employees through our platform or app. PEO Cost Our Finland PEO solution is the most affordable on the market. Time-to-hire Fast onboarding in Finland, hire in as little as 24 hours.
Contracts We draft labor contracts compliant with Finnish labor law. Local Benefits We administer all mandatory benefits and contributions in Finland. 180+ Countries It doesn’t stop with Finland — we are an international PEO
stay compliant with Finland labor laws

Employment Laws

Employment contracts in Finland

When hiring in Finland, you will need to provide all employees with a formal contract of employment. These contracts should include all relevant details of the working arrangement, such as wage/salary, parental leave, and severance terms. It should be written in Finnish and reference the local Euro currency.

By partnering with our Finland PEO, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations. 

Fixed-term
Probationary period6 months, or half the employment period maximum
Termination notice periodDuring probation: none
0-1 year of employment: 14 days’ notice
1 to end of 3rd year of employment: 1 month’ notice
4 to end of 7th year of employment: 2 months’ notice
8 to end of 11th year of employment: 4 months’ notice
>12 years of employment: 6 months’ notice
SeveranceNot required
Indefinite
Probationary period6 months, or half the employment period maximum
Termination notice periodTermination notice periodDuring probation: none
0-1 year of employment: 14 days’ notice
1 to end of 3rd year of employment: 1 month’ notice
4 to end of 7th year of employment: 2 months’ notice
8 to end of 11th year of employment: 4 months’ notice
>12 years of employment: 6 months’ notice
SeveranceNot required

Working hours in Finland

Working hours in Finland are limited to 40 hours per week and eight hours per day, but could be lower depending on how specific contracts have been negotiated. Beyond this, employers must be paid. Overtime pay is 150% of normal pay for the first two hours, then 200% of pay for more than two hours. Additionally, employees can refuse overtime hours at any time.

Hire compliantly in Finland without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

Finland public holidays

Most Finnish workers are entitled to several public holidays per year.

Christmas Eve and Midsummer Eve are not officially recognized, however, these (and some other holidays) are commonly given to employees anyway. The following are common throughout Finland:

Finland has a range of national public holidays that are celebrated annually. In 2023 these holidays are:
Date Holiday name
1 Jan, 2023 New Year’s Day
6 Jan, 2023 Epiphany
7 Apr, 2023 Good Friday
10 Apr, 2023 Easter Monday
1 May, 2023 May Day
18 May, 2023 Ascension Day
23 Jun, 2023 Midsummer Eve
24 Jun, 2023 Midsummer
4 Nov, 2023 All Saints’ Day
6 Dec, 2023 Independence Day
24 Dec, 2023 Christmas Eve
25 Dec, 2023 Christmas Day
26 Dec, 2023 Boxing Day

Finland vacation leave

Employees in Finland are entitled to five weeks (25 days) of paid vacation leave. This leave is accumulated over time, with one month of employment generally earning an employee 2.5 days. In some cases, CBAs mean the number of vacation days can be significantly higher.

Finland sick leave

Employers in Finland are required to pay employees who are off work with sickness. The amount of coverage depends on the length of employment. For employees of more than one month, employers must pay up to nine days of sick leave at full pay. For employees of less than one month, employers only need to cover half of normal pay.

Parental leave in Finland

Parents in Finland can both take paid parental leave. Maternity leave is 105 days, and paternal leave is 54 days, and there is another 158-day allowance that can be shared between parents. Payments during parental leave are paid by the government, not employers.

In 2021, the law is changing to give parents of any gender an equal right to parental leave.

Taxation in Finland

The personal income tax system in Finland is progressively scaled at rates between 0% and 31.25%. There is also a local municipal tax which varies between 16.5% and 23.5% depending on location. Members of some religious groups must also pay a church tax of between 1% and 2.2%, depending on the parish.

The corporate income tax rate is 20%.

Health coverage in Finland

Finland has a high-quality public healthcare system, so employers are not expected to provide private health insurance as part of their benefits packages.

Terminations and severance in Finland

The length of notice period required for terminations in Finland depends on length of employment. For employers who have been employed for less than five years, 14 days of notice must be given. For employees of more than five years, the mandatory notice is one month.

Notice periods can also vary dependent on CBAs that might be in place for specific roles, industries, and companies.

Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ Finland PEO can mitigate risk for foreign companies and provide guidance through this process. 

hassle-free Finland compensation & benefits

Compensation & Benefits

Compensation laws in Finland

There is no legally defined minimum wage in Finland, and the minimums depend on negotiations and CBAs in specific roles and industries. For this reason, it is important that any employer is familiar with the up-to-date norms for their situation.

Minimum Wage Country Comparison Chart (Per month in USD)
Switzerland (Geneva) $4,000
Italy $2,255
Australia $1996
Algeria $156
Uzbekistan $22
Benefit management in Finland

Setting up a benefits system for your Finnish employees can be difficult and complicated to navigate if you are unfamiliar with the country and its labor laws. If you want to tackle the setup independently, you can expect it to take several weeks and potentially present delays to your expansion process.

Horizons offer an alternative to simplify your Finland PEO & benefits management. Our outsourcing services will cover your benefit setup and management, helping you focus on a faster and more successful expansion.

Hire in Finland in 24h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

A Finland PEO and a Finland EOR are two types of companies which specialize in providing human resources services to businesses in Finland.

The main difference between a Finland PEO and a Finland EOR is in the scope of their services.

Finland PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging a Finland PEO is essentially outsourcing your HR duties in Finland.

Finland EORs actually take over as the legal employer of your employees based abroad. Finland EORs become responsible for labor compliance for your employees in Finland.

At Horizons, we offer both PEO and EOR services in Finland. Get in touch now and let us know what service you are seeking.

A PEO in Finland can feasibly hire both local and foreign nationals to work in Finland.

However, the ability of Horizons to sponsor your foreign national employee in Finland may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

In most cases, Horizons’ Finland PEO can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Finland.

It is possible to get a work visa in Finland. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Finland are limited, however—get started today to secure your employees’ visa spot.