Currency CurrencyEuro (EUR) Working Time Work Week40 hours Employer Taxes Employer Taxes approx. 20%

Hire in Finland

Get the best talent in Finland. Let Lano do the heavy lifting. We’ll help you hire the best full-time employees or contractors, saving you from the pain of establishing a legal entity. No need to worry about complex local laws or tax requirements. From compliant contracts to global payroll, we’ve got you covered. 

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Finnish employees enjoy high levels of social protection, a good work-life balance and a generally high quality of life. Hiring a worker who benefits from such a stable and advantageous work environment means hiring a productive and happy employee who delivers great work. 

What’s more, employees in Finland are used to flexible working hours – in fact, agile working hours have been part of the Finnish working culture for several decades – so scheduling a team call with several remote employees situated in different time zones should be no problem for your new recruit from Finland.

Basic Facts about Finland

  1. official state name Republic of Finland (Suomen tasavalta)
  2. capital Helsinki
  3. population 5.54 million
  4. languages Finnish, Swedish
  5. currency Euro (EUR)
  6. time zone UTC +2
  1. Show public holidays
    01 Jan New Year
    06 Jan Epiphany
    02 Apr Good Friday
    04 Apr Easter Sunday
    05 Apr Easter Monday
    01 May May Day
    13 May Ascension Day
    23 May Whit Sunday
    26 Jun Midsummer
    06 Nov All Saints’ Day
    06 Dec Independence Day
    25 Dec Christmas Day
    26 Dec Boxing Day

Employment Contract

Although, legally speaking, it is also possible to conclude oral or electronic employment contracts, it is best practice to put a written employment contract in place which outlines the basic terms of employment such as:

  • Identification of both parties 
  • Date of commencement (and employment duration for temporary contracts) 
  • Workplace
  • Job description, duties and responsibilities
  • Basic salary as well as other compensation or benefits
  • Working hours 
  • Total number of holidays
  • Notice periods for employment termination
  • Probation period
  • Reference to collective agreements
  • Terms applying for work conducted abroad

Even if no written contract is concluded, the employee must still receive the full details of his or her employment agreement as mentioned above in writing. The majority of employment contracts in Finland are permanent but fixed-term contracts are equally possible.

Probation Period

It is common practice in Finland that employees and employers agree on a probationary period. However, trial periods should not exceed six months – four months under certain collective agreements.

Working time

Working Hours and Breaks

Employees in Finland usually work 40 hours per week, i.e. eight hours per day and five days per week. As for rest periods and breaks, the Working Hours Act rules that employees must have an uninterrupted rest period of at least 35 hours per week – preferably, this should include Sunday

Additional regulations:

  • a mandatory rest break of at least 30 minutes – in most cases even an hour – if the employee’s daily working time exceeds six hours
  • daily rest period cannot be shorter than eleven hours


Employers are obligated to seek the employee’s consent every time overtime work is necessary. In no case should an employee’s weekly working time exceed 48 hours – overtime included. Over the course of four months, an employee should not work more than 138 additional hours – furthermore limited to 250 hours per year.

Overtime pay is 150% of the employee’s normal wages for the first two hours worked overtime in one day. Every following hour must be paid at a rate of 200%. 


Employers can issue payments either once or twice a month

Minimum Wage

There is no statutory minimum wage in Finland. Instead, minimum remuneration rates are determined by collective agreements.

Sick Pay

After one month of employment, employers are obligated to provide full sick pay for their employees for up to 10 consecutive days (day of falling ill, plus 9 following days). Thereafter, the employee receives sick leave benefits from his or her sickness insurance amounting to 70% of the usual salary. 

Sick leave is generally limited to 300 working days. It is the employee’s duty to immediately inform their employer of their absence and provide a medical certificate within the first three days of absence from work.


There are no legal provisions regarding the payment of a 13th salary, but there are many collective bargaining agreements which mandate the payment of a holiday bonus equal to 50% of the pay employees receive during their annual leave.

Taxes and Social Security Contribution

As of 2022, the following tax and social security contribution rates apply to employees and employers:


20% corporate tax rate

24% VAT (standard rate)


individual income tax rates range from 0% to 31.25% *

additional municipal tax ranging from 16.5% to 23.5% on certain income

social security

around 20% of employee salary, including:

around 17.4% pension insurance 

around 0.7% occupational accident insurance 

around 0.06% group life insurance

0.5% – 2.05% unemployment insurance

1.34% health insurance


10.26% – 11.76% of employee salary, including:

1.71% health and sickness benefits insurance (1.18% of the contribution only apply to  income exceeding EUR 15,128 a year)

7.15% pension insurance (8.65% for employees aged 53 to 62)

1.4% unemployment insurance (only employees aged 17 to 64)

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Individual income is taxed progressively based on the following tax brackets (percentage rates given only apply to income exceeding the respective tax bracket threshold):

– up to EUR 19,200: 0%

– EUR 19,200 – EUR 28,700: EUR 8 + 6% 

– EUR 28,700 – EUR 47,300: 17.25% + EUR 578 

– EUR 47,300 – EUR 82,900: 21.25% + EUR 3,786.50 

– above EUR 82,900: 31.25% + EUR 11,351.50 

Employee Benefits

Annual Leave

During their first year with an employer, employees receive two days of paid leave for each month they have worked. In every following year of service, they gain two and a half days of paid leave for each month worked. This leads to a total of 24 paid days off during the first year of employment and 30 days of paid annual leave starting with the second year of employment. Saturdays are included in the leave calculation. Finland observes 13 public holidays – including Easter Sunday and Whit Sunday.

Maternity Leave and Paternity Leave

Maternity leave in Finland is 105 days and can start between 30 and 50 days before birth. Fathers currently have the right to take 54 days of paternity leave of which 18 days may overlap with the mother’s maternity leave. Both maternity and paternity leave are paid via a statutory allowance.  

Parental Leave

In addition to maternity and paternity leave, both parents are entitled to 158 working days of parental leave which they are free to arrange as they wish. It is, however, not allowed that both parents take this leave at the same time. 

Additional Leave and Benefits

After having completed one year of service, employees are entitled to unpaid study leave in order to undergo additional training or to study.

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Employment termination

In addition to employment termination by default – i.e. in case of a fixed-term contract – resignation and mutual agreement, Finnish labour law recognises the following grounds for employee dismissal (non-exhaustive list):

  • redundancy, collective dismissal or other reasons linked to the business situation
  • summary dismissal due to gross misconduct 
  • breach of contract
  • employee’s underperformance
  • employee’s incapability to return to work after long-term illness or injury

The statutory notice periods employers have to respect when dismissing an employee range from two weeks to six months, depending on the employee’s length of service:

  • less than one year of service: two weeks
  • between one and four years of service: one month
  • between four and eight years of service: two months
  • between eight and twelve years of service: four months
  • more than twelve years of service: six months

Notice periods for employees are shorter: When wishing to resign, employees have to give notice to their employer at least 14 days prior to the intended resignation date if their length of service does not exceed five years – one months if it does. 

Severance pay may be attributed to senior employees who have reached the age of 45 and who are subject to collective dismissal. However, payments are not to be made by the employer but are withdrawn from public funds. Most employees are only entitled to any outstanding payments until the end of their notice period.

Hiring in Finland?

Not sure if you should start with a contractor or go ahead and hire a full-time teammate in Finland? The Lano platform makes it easy to go from freelance to full-time employee. Get expert guidance from the Lano team to compare your options and keep growing.