Hiring in Finland: Complete Guide 2027
Everything you need to know about hiring and managing employees in Finland
Overview
Finland has no minimum wage law. Pay floors come from the generally binding collective agreements of each sector, and the Employment Contracts Act does the rest: probation up to six months, notice from 14 days to six months by tenure, no statutory severance. Employer on-costs run 20 to 21% of gross in 2026, most of it the 17.10% TyEL pension contribution, with unemployment insurance at 0.31% and the health insurance contribution at 1.91%. An EOR holds the TyEL policy, the accident insurance and the Incomes Register filings, so you do not need a Finnish Oy.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Finland
Finnish payroll runs monthly. An employer joins the Tax Administration's Employer Register, takes out TyEL pension insurance with a pension company (Ilmarinen, Varma, Elo or Veritas) and reports every wage payment to the Incomes Register within five days. Employer contributions in 2026: TyEL 17.10% on average (the employee pays 7.30%, or 8.65% between 53 and 62), unemployment insurance 0.31% on the first EUR 2,509,500 of annual payroll and 1.23% above, health insurance 1.91%, accident and group life cover 0.5 to 1% by industry. Call it 20 to 21% of gross. Withholding follows each employee's tax card from vero.fi: state tax from 12.64% at EUR 22,000 to a 37.5% top rate plus municipal tax averaging 7.54%; the top marginal rate is 52% in 2026. No statutory minimum wage: the sector's generally binding agreement sets the floor and the holiday bonus. The EOR files the reports, pays withholding and contributions, and issues payslips.
Key Labor Laws &
Requirements
Employment Contracts
- Written contract or written statement of terms
- Probation up to 6 months
- Fixed term up to one year with no reason since 2025
Leave & Time Off
- 2.5 days of holiday a month after the first year, 50% holiday bonus by agreement
- Sick pay at full salary for 9 days after the waiting day, then Kela
- 160 days of parental allowance per parent
Termination Rules
- Notice 14 days to 6 months by tenure
- Proper reason required for individual dismissal
- No statutory severance
COMPLIANCE
Collective Agreements and Termination Compliance in Finland
Individual dismissal needs a proper reason under the Employment Contracts Act; the 2026 amendment dropped the word "weighty" from the test. Employer notice runs 14 days up to one year of service, one month to four years, two months to eight, four months to twelve and six months beyond; the employee gives 14 days, or one month after five years. No statutory severance. Pay and the holiday bonus come from the sector's generally binding agreement, and a firm hiring out staff is a temporary agency under the equal-treatment rules, so the user company's agreement can apply to the worker. Ask which one. An EOR handles the notice calculation, the holiday settlement under the Annual Holidays Act and the final Incomes Register report.
Key Challenges
- No statutory minimum wage: the sector's generally binding collective agreement sets the floor
- Individual dismissal still needs a proper reason after the 2026 amendment
- Holiday bonus of 50% on top of holiday pay under most agreements
- Incomes Register filing within five days of every wage payment
- Non-EU hires wait on a Migri residence permit
Country Highlights
Advantages
- Probation up to six months; fixed terms up to a year with no justification since 2025
- Employer on-costs of 20 to 21%, below Sweden and France
- No statutory severance pay
- Software, telecom and games talent in Helsinki, Espoo, Tampere and Oulu
- English works in most tech workplaces; EU member, euro, GDPR
Popular Industries & Roles
Technology
Avg. Salary: €55k-€85k
Helsinki, Espoo and Tampere hold Finland's software, mobile games and telecom engineering talent; the Nokia years still feed the radio and network stack.
Industry & Clean Energy
Avg. Salary: €50k-€80k
Forest industry, machinery and clean energy employ engineers from Tampere to Vaasa; wind, battery and grid projects drive the hiring.
Health & Life Sciences
Avg. Salary: €48k-€75k
Turku and Oulu run Finland's pharma, diagnostics and health tech clusters, with the university hospitals and the Biobank Act behind the research.
Top 3 Providers in Finland
Based on our analysis of pricing, compliance record, service quality, and customer reviews
GTS Nordic
- Nordic EOR — Denmark, Sweden, Norway, Finland, US
- Tri-party model for agencies and end-clients
- Custom per-contractor pricing
- Founded 1999; Fast-Track work permit certified
Deel
- EOR in 130+ countries; owned entities in 120+
- Contractor and EOR in one platform
- 300+ integrations including Slack, Workday
- AI-powered compliance automation
Remote
- 100% owned entity model globally
- Compliance-first with IP protection
- Strong contractor management at $29/month
- Ranked #1 for compliance on G2
Frequently asked questions
Hiring in Finland through an EOR, in short.
Need a shortlist?
Two minutes, ten providers ranked for your brief.
How much does an employer pay on top of salary in Finland?
Employer contributions in Finland come to ≈20–21%; the largest mandatory line is Pension 17.1%. With the other statutory benefits and a typical EOR fee, budget ~30–38% on top of gross salary.
What does an EOR charge per employee in Finland?
Published EOR fees in Finland run $500–900/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Finland pay in tax and contributions?
Income tax is ~7.5% municipal + 12.6–37.5% state and employee social contributions are ≈10% (7.3% pension), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Finland?
2-5 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Finland?
GTS Nordic, Deel and Remote hold the first three places in our ranking for hiring in Finland. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Finland.
Find a better EOR — without risk
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