Finnish Employment Law for Employers

Want to hire someone in Finland? Here are the basic rules in plain English, and what you need to do as an employer.

Your company usually does not need a Finnish company to hire in Finland. You can register your foreign company as an employer and hire employees in Finland from there.

Last updated 7 November 2026

Finnish Employment Law at a Glance

Do I need a Finnish company?	Usually not
Is there a minimum wage?	Not by law. Many sectors set minimum pay in a collective agreement
Working hours	Normally 8 hours a day and 40 hours a week
Trial period	Up to 6 months
Paid holiday	About 2 to 2.5 days for each month worked
Sick pay	The employer pays the first days
Employer costs	About 20% on top of the salary

Before Your Employee Starts

• Check if your sector has a collective agreement. It can set minimum pay and other terms.
• Make sure the employee has the right to work in Finland.
• Write down the main terms: job, pay, working hours, start date and trial period.
• Arrange occupational health care. Every employer must have it.
• Register as an employer and take out the required insurances.
• Get the employee's tax card.

Every Month

• Pay the salary.
• Report the salary to the Incomes Register within five days of the payment date.
• Pay tax withholdings and the employer's health insurance contribution to the Tax Administration by the 12th of the next month.
• Pay the insurance invoices when they are due.

Holidays and Sick Leave

Employees earn about 2 days of paid holiday for each month they work. After the first year, they earn 2.5 days per month. Many collective agreements also give a holiday bonus.

If an employee gets sick, the employer usually pays the salary for the first sick day and the next nine days. After that, the employee gets support from Kela, the Finnish social security office.

Ending an Employment

During the trial period, both sides can end the employment without notice. After that, the employer needs a proper reason to dismiss an employee. The notice period depends on how long the person has worked for you:

Time employed	Notice from the employer
Up to 1 year	14 days
1 to 4 years	1 month
4 to 8 years	2 months
8 to 12 years	4 months
Over 12 years	6 months

An employee who resigns gives 14 days' notice, or 1 month after 5 years.

Taxes

Employees who live in Finland have a Finnish tax card. You withhold tax as the card says. Employees who live abroad are usually taxed at a flat 35%, called tax at source.

If the employee stays in their home country's social security, they have an A1 certificate. Then some Finnish payments may not apply. If your company does business in Finland, also read about corporate tax in Finland.

What Does an Employee Cost?

Roughly 20% on top of the gross salary in 2026. The biggest part is the pension insurance (TyEL), about 17%. The rest is health, unemployment, accident and group life insurance. Try our employer cost calculator.

How Adcount Can Help

We help foreign companies hire employees in Finland. We register your company as an employer, set up the insurances and run your payroll every month, in English. Employer registration is 1 640 € and payroll starts from 150 €/month.

See Payroll Services

This guide is a simple overview. Collective agreements, tax treaties and your own situation can change the details. Sources: Finnish Tax Administration, obligations of a foreign employer and Incomes Register deadlines, Employment Contracts Act, Annual Holidays Act.