Finland at a glance
Taxes in Finland
Employer Contributions
| Contribution | Rate |
|---|---|
| Total employer tax | 27.69% – 29.39% |
| Pension insurance (TyEL) | ~25.12% average |
| Health insurance | 1.16% |
| Accident insurance | 0.7% |
| Unemployment insurance | 0.5% – 2.05% |
| Contribution | Rate |
|---|---|
| Total employer tax | 27.69% – 29.39% |
| Pension insurance (TyEL) | ~25.12% average |
| Health insurance | 1.16% |
| Accident insurance | 0.7% |
| Unemployment insurance | 0.5% – 2.05% |
| Contribution | Rate |
|---|---|
| Pension insurance | 7.15% – 8.65% (age-dependent) |
| Unemployment insurance | 1.5% |
| Municipality tax | 4.36% – 10.86% |
| Church tax | 1% – 2.1% |
| Taxable Earned Income (€) | Tax Rate |
|---|---|
| €0 – €22,000 | 12.64% |
| €22,001 – €32,600 | 19.00% |
| €32,601 – €40,100 | 30.25% |
| €40,101 – €52,100 | 33.25% |
| Over €52,100 | 37.50% |
Employer of Record in Finland
How Remote& EOR Works
Remote& acts as the legal employer of your Finnish workers, managing payroll, tax filings, statutory benefits, and employment contracts while you direct the work.
| Party | Role |
|---|---|
| Your Company | Manages work tasks, performance, and team direction |
| Remote& | Runs payroll, files TyEL and tax, administers benefits, ensures legal compliance |
| Employee | Signs contract with Remote& and fulfills work obligations for your company |
Ask Remi:
"Hire a product designer in Finland — €5,500/month, starting next month" Remi handles everything: contract, TyEL pension registration, payroll setup, and occupational health enrollment.
Benefits in Finland
- Occupational health care: Mandatory for all employees regardless of employment type or duration — employer must provide and fund it
- Pension insurance (TyEL): Mandatory employer arrangement for all employees aged 17–67
- Accident insurance: Employers must secure coverage for workplace accidents and occupational diseases
- Accommodation or housing benefit
- Company car
- Phone and internet allowance
- Meal benefit
- Sports and culture benefits
- Performance bonuses
- Stock options
- Supplementary health insurance
- Learning and development budget
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 24–30 days + public holidays |
| Sick Leave | Up to 1 year |
| Maternity Leave | 320 days parental allowance (40 additional days for the pregnant parent) |
| Paternity Leave | 320 days parental allowance (equal split expected) |
| Parental Leave | 320 days shared equally between both parents |
Employment conditions
Probation
The Employment Contracts Act permits probationary periods up to 6 months. Exceptions apply when work-related training exceeds 6 continuous months, allowing a longer probation.
Non-Compete
Post-employment non-compete agreements may remain in force for a maximum of 1 year after termination.
Employee Rights & Protections
Finnish workers are entitled to: written employment agreement, remote work rights, health and safety standards, payslip, equal treatment by gender, overtime pay, whistleblower protection, privacy rights, and pay transparency.
Payments
End of employment in Finland
Indefinite employment contracts require proper notice before termination. Notice periods follow applicable regulations or collective agreements. Employers cannot terminate without proper and weighty cause relating to employee conduct or financial/production grounds.
Employees cannot be dismissed on financial or production grounds if placement or retraining is feasible. Unjustified dismissal triggers financial compensation obligations.
Dismissed employees may receive unemployment allowance from KELA (basic allowance) or from an unemployment fund (earnings-related), subject to fund membership requirements.
Frequently asked questions
Four routes: run payroll from HQ for short-term cases; engage contractors for project-based work; set up a Finnish entity for direct employment; or use Remote& as Employer of Record. Finland's collective bargaining framework means minimum pay and conditions are often set by sector — Remote& navigates these for you.