Currency: Euro (EUR) (Rate)
Public Holidays: 13 bank holidays in 2021 (see here).
Employer Taxes: ~22%
Official Language: Finnish, Swedish
Payroll frequency: Monthly
13th / 14th Salary: (what's this?) Not legally required, but annual holiday bonus is common in most collective agreements. Usually the bonus is 50% of gross pay for the annual holiday.
The notice period depends on the duration of employment.
For dismissals:
For resignations:
Fixed-term employment cannot be terminated. Employers must give a warning to an employee performing poorly, as well as an opportunity to improve before being terminated.
Holiday days that remain unused at the end of an employment relationship are compensated for the employee.
There is no statutory severance pay unless the employee’s termination is unjustified, or the employer has decided voluntarily to provide it.
Maximum of six months.
There is no official minimum wage in Finland.
Non-compete agreements must only be used for reasonable grounds. Compensation is not required for a non-compete agreement that last up to six months, but is required for agreements lasting longer.
Annual leave is calculated from the period of 1 April through 31 March of the following year. During the first holiday credit year, employees accrue two days of paid holiday per month, and two and a half days thereafter. The total number of paid holidays per year is thus between 24 and 30 days (Saturdays are counted in when taking a full week of vacation).
Employees who have at least 15 years of service receive three vacation days per month.
Vacation is typically taken between 2 May and 30 September (four weeks in the summer and one week in the winter).
Eight hours a day, 40 hours a week, unless otherwise provided by collective agr13eement. However, the regular working hours for white-collar employees specified in collective agreements are typically 7.5 hours a day and 37.5 hours per week.
The regular business hours are typically 8:00-16:00 or 9:00-17:00, from Monday to Friday.
Overtime work is performed at the employer’s initiative and with the employee's consent. Overtime hours cannot exceed 138 hours over a four-month period and 250 hours annually.
Overtime work is paid at the rate of 150% of the regular pay for the first two hours and 200% for the following hours. Weekly overtime is paid at the rate of 150% of the regular pay. Any work performed on Sunday is compensated at 200%.
No compensation for additional work or overtime is paid for work performed at the employee’s own initiative.
Employees who have been in service for at least a month are entitled to paid sick leave of nine working days.
After these nine days, the employee must provide a medical certificate from a doctor. They are then entitled to sickness allowance from the state (the Kansaneläkelaitos or Kela), the amount of which is based on the employee's earned income and is paid for weekdays and Saturdays for a maximum period of 300 days.
Employees that have been working for less than a month are entitled to 50% of their pay during sick leaves.
Employees are entitled to maternity leave of 105 days (excluding Sundays). They can choose to start the leave a maximum of 50 days before the expected due date.
Employees are also given 54 weekdays (including Saturdays) of paternity leave, with a maximum of 18 days to be used at the same time as the mother. The remaining days are to be taken in more than two periods.
Employers are not required to pay a salary during this period, but the state can grant the employee an earnings-related maternity allowance. However, most collective agreements require that salary is paid during maternity leave and temporary child-care leave.
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In addition to the income tax, employees are subject to municipal income tax, which varies between 16.5% and 23.5% depending on the municipality. Employee may also pay church tax.
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