Finland is an economy that is a top performer in several metrics of national performances such as education, civil liberties, economic competitiveness, quality of life, and human development. The country has consistently ranked first on the World Happiness Report from the years 2018 - 2021 that has positively impacted the growth of the economy with regards to the work-life balance making it an ideal country to expand businesses into. With widespread prosperity and a high per capita income, the economy has largely remained an agrarian country while rapidly changing into an industrialized and advanced economy in no time giving opportunities to sectors such as energy, transport, manufacturing industries, public policy, healthcare, IT, and tourism.
The top universities in Finland are available on Webometrics.
The table below shows the average salaries of some jobs in Finland. Please refer to SalaryExplorer for more information.
The average salary in Finland is 4,690 EUR with the lowest salary average being 1,190 EUR and the highest salary average being 20,900 EUR. One key piece of information to consider is that the average salary differs depending on the location, industry, and the profession the employee works at. You can find further information on the average wages in Finland here.
The employer payroll tax is calculated as follows:
The employee payroll tax is calculated as follows:
*(7.15% for employees of age 17 to 52 years or 63 to 67 years and 8.65% for employees of age 53 to 62 years)
Income Tax in Finland is calculated as follows:
The minimum wage in Finland for new and renewal worker residence is €1,211.
The employee must be paid monthly.
13th month salary
There is no specific provision of 13th month salary in Finland.
Equity Stock Options (ESOP)
Employee stock options are a common and an established part of the remuneration packages that are offered to Finnish employees. They can be offered to select senior employees or all employees.
However, it is not mandatory to provide employee stock options as a part of an employees’ remuneration but can be provided as a part of additional compensation.
The standard number of working hours in Finland is 8 hours a day or 40 hours a week.
There is a 50% increase in wage for the first two hours of overtime and 100% for subsequent hours.
Number of public holidays is 12 days. The list of holidays can be found here.
In Finland, an employee can earn leave in three types of way:
The maximum amount of annual leave is either 24 days or 30 days.
Paid sick leave in Finland is for a period of 9 workdays during each working year.
The maternity leave given to female employees is for 105 days unpaid work which can begin 30 to 50 days before the birth of the child. Female employees are entitled to 8 weeks preceding the time of delivery and 8 weeks following the childbirth. Unpaid paternity leave is allowed for up to 54 days.
Termination in Finland can be done on a mutual consent basis.There can also be dismissal of the employee by the employer on the grounds of a justified reason.
Unless agreed otherwise in the employment agreement, the notice period is as follows:
Employees in Finland are not entitled to severance pay unless expressed in the agreement.
The probation labour contract is six months.
Arranging Social Security becomes mandatory if an employer pays a salary of more than EUR 1,300 to the employee during a calendar year. An employer must take out 3 separate insurance policies that include:
If the salary/wages an employer pays exceed the lower limit set by the tax authority of Finland, the employer must pay for the employees' social security contribution, i.e the health insurance contribution. However, if the salary is lesser EUR 1,300, the contribution is not mandatory.
The standard VAT in Finland is 24%. The reduced rates are 14%, 10%, and 0% for businesses in certain industries and sectors.