Hiring in Finland: Employer Costs, Labor Laws and How to Hire
Finnish employers pay 17.10% TyEL pension on average, 1.91% health insurance and 0.31% unemployment insurance in 2026, so 19.32% of pay for an employer with a payroll under €2,509,500. The employee pays 7.30% TyEL and 0.89% unemployment insurance. On €48,000, the employer's cost is €57,273.60, before accident insurance.
Hiring someone in Finland? This guide covers what an employee costs, employer contributions, the labor rules that apply, pay without a statutory minimum wage, income tax, work permits and the ways a company outside Finland can employ someone there.
Employer and employee contributions in Finland, 2026
Key employment rules in Finland
How to hire in Finland
Hiring in Finland comes down to two decisions: who you hire, and how you employ them.
- Find the person. Write the role, set the salary against Finnish pay levels and the collective agreement for the sector, then source and interview candidates. You can run the search yourself with a job post, or use a placement service that delivers a shortlist.
- Choose how to employ them. A Finnish entity running payroll, an employer of record or a contractor agreement. Each option is explained below.
- Make the offer. The contract has to meet the rules in the employment table above and at least the generally binding collective agreement that covers the work.
Your options for employing someone in Finland
- Finnish entity: you register a company in Finland, register as an employer, run payroll, withhold tax and pay TyEL pension, health and unemployment insurance yourself. You also take out occupational accident insurance. It suits a team of several people in Finland.
- Employer of record (EOR): a third-party provider becomes the legal employer and runs Finnish payroll for a monthly fee per employee. Your company directs the work.
- Contractor: the person invoices you through their own business. The relationship has to be genuinely independent, or it can count as employment.
Euro Remote Talent does not employ people on your behalf. We handle the placement: we find and shortlist the candidate, and you employ them through the route that fits.
What an employee costs in Finland
Take a salary of €4,000 a month, or €48,000 a year, at an employer insured with a pension company at the average TyEL rate and with a payroll under €2,509,500 a year. The employer pays:
- TyEL pension: €48,000 x 17.10% = €8,208.00
- Health insurance: €48,000 x 1.91% = €916.80
- Unemployment insurance: €48,000 x 0.31% = €148.80
That is €9,273.60, or 19.32% of pay, so the employer's cost is €57,273.60 a year. Occupational accident insurance and group life insurance come on top, at rates set by line of business and insurer. Holiday bonuses and other pay items in the collective agreement also come on top. From the employee's pay, the employer withholds TyEL of 7.30% (€3,504.00), unemployment insurance of 0.89% (€427.20) and income tax, which includes the 1.98% health insurance contribution (€950.40).
Minimum wage and pay
Finland has no statutory minimum wage. Pay floors come from collective agreements. Under the Employment Contracts Act, chapter 2, section 7, every employer in a sector must follow at least the generally binding national collective agreement for that sector, even if it has not signed it. Full-time employees earned an average of €4,075 a month in 2024 and the median was €3,615, according to Statistics Finland. See our average salary in Finland page for pay by sector and occupation.
Income tax in Finland
The employer withholds tax from each salary payment using the employee's tax card. The state tax scale on earned income for 2026:
| Taxable earned income, 2026 | State tax at the lower limit | Rate on income above the lower limit |
|---|---|---|
| Up to €22,000 | €0.00 | 12.64% |
| €22,000 to €32,600 | €2,780.80 | 19.00% |
| €32,600 to €40,100 | €4,794.80 | 30.25% |
| €40,100 to €52,100 | €7,063.55 | 33.25% |
| Over €52,100 | €11,053.55 | 37.50% |
Municipal tax comes on top at the rate of the municipality where the employee lives, and church members also pay church tax. The public broadcasting tax is 2.5% of income above €15,150, up to €160 a year.
Work permits
- EU, Liechtenstein and Swiss citizens: do not need a residence permit. They register their right of residence if they stay longer than 90 days.
- Specialists and EU Blue Card: the gross salary must be at least €3,937 a month in 2026, according to the Finnish Immigration Service (Migri). Specialists can use the fast-track service and get the permit in 2 weeks.
- Other employed persons: the total gross salary must be at least €1,600 a month in 2026, and at least the collective agreement rate where one applies.
Public holidays
Finnish public holidays are the church holidays named in the Church Act, plus Independence Day and May Day. Under the Annual Holidays Act these days, together with Christmas Eve, Midsummer Eve and Easter Saturday, are not counted as working days when annual leave is calculated.
How Euro Remote Talent can help
We do placement. We source, screen and interview remote professionals across Europe, then deliver a shortlist of 3 candidates within 21 days for a flat $6,500, or your deposit back. Prefer to run the search yourself? Post a job for $299 and reach candidates who want to work remotely.
See how placement works, post a job or book a 30-minute call. Browse remote jobs in Finland to see who is hiring there now.
This is general information, not legal or tax advice. Rules change and collective agreements can set different terms. Confirm with a local accountant or lawyer before you hire.
Frequently asked questions
What does an employer pay on top of salary in Finland?
In 2026, TyEL pension of 17.10% on average, health insurance of 1.91% and unemployment insurance of 0.31%, or 1.23% on payroll above €2,509,500. That is 19.32% for a smaller employer, plus accident and group life insurance.
Is there a minimum wage in Finland?
No. Finland has no statutory minimum wage. Employers must pay at least what the generally binding collective agreement for their sector sets, under the Employment Contracts Act, chapter 2, section 7.
How much paid leave do employees get in Finland?
2.5 working days for each full month of the holiday credit year, or 2 days if employment has lasted under 1 year by 31 March. That is 30 days, or 5 weeks, for a full year. 24 days are taken between 2 May and 30 September.
How long is the notice period in Finland?
Unless agreed otherwise, the employer gives 14 days in the first year of service, rising to 6 months after 12 years. The employee gives 14 days, or 1 month after 5 years of service.
Can a company outside Finland hire someone there without a local entity?
Yes. The usual routes are an employer of record, a third-party provider that employs the person for you, or a genuine contractor agreement. Euro Remote Talent handles the placement: we find, screen and shortlist the person, and you choose the route.
Sources
- Finnish Tax Administration (Vero), Social insurance contributions. Checked 3 Nov 2026.
- Ministry of Social Affairs and Health, Confirming the 2026 TyEL contribution, 5 Nov 2025. Checked 3 Nov 2026.
- Finnish Centre for Pensions (ETK), Statutory social insurance contributions in Finland in 2026. Checked 3 Nov 2026.
- Finnish Tax Administration (Vero), Valtion tuloveroasteikko 2026. Checked 3 Nov 2026.
- Finnish Tax Administration (Vero), Tax bases. Checked 3 Nov 2026.
- Finnish Tax Administration (Vero), Municipal and parish income tax rates 2026. Checked 3 Nov 2026.
- Finlex, Työsopimuslaki 55/2001. Checked 3 Nov 2026.
- Finlex, Act 412/2026 amending the Employment Contracts Act. Checked 3 Nov 2026.
- Ministry of Economic Affairs and Employment via Finlex, Employment Contracts Act, English translation. Checked 3 Nov 2026.
- Finlex, Vuosilomalaki 162/2005. Checked 3 Nov 2026.
- Finlex, Työaikalaki 872/2019. Checked 3 Nov 2026.
- Finlex, Kirkkolaki 652/2023. Checked 3 Nov 2026.
- Statistics Finland, Structure of earnings, table 15au. Checked 3 Nov 2026.
- Finnish Immigration Service (Migri), Income requirement for work-based residence permits. Checked 3 Nov 2026.
- Finnish Immigration Service (Migri), Residence permit for specialists. Checked 3 Nov 2026.
- Finnish Immigration Service (Migri), I am an EU citizen. Checked 3 Nov 2026.
