What is the Incomes Register in Finland?

It is the national database for wages and benefits. Employers must report each payment within 5 calendar days of the pay date. Tax, pension, and benefit authorities all use this data, so late reports cause problems fast.

Do employees in Finland get a holiday bonus?

The law does not require one, but most collective agreements grant a holiday bonus of 50% of holiday pay. It is usually paid when the employee takes summer leave. Include it in annual cost estimates.

How does Good Balance Global hire employees in Finland?

As your Employer of Record (EOR), we employ your hire under the collective agreement that applies to the role. We arrange the TyEL pension and statutory insurance, report to the Incomes Register, and pay tax by the 12th of each month.

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Payroll and benefits guide

Finland

CapitalHelsinki

Fiscal Year1 January - 31 December

Date Formatdd/mm/yyyy

CurrencyEUR (Euro)

Payroll FrequencyMonthly

Employer Taxesapprox. 19.9% – 20.8%

Employee Costs10.17%

Overview

Languages: Finnish, Swedish
Income tax: 12.64% – 37.5% + municipal
VAT: 25.5%; Reduced rates: 13.5%, 10%. The 14% reduced rate fell to 13.5% on 1 January 2026

Contributions

Employer

approx. 17.10%

Earnings-related pension (TyEL)Average rate; varies by employer and insurer

0.31% / 1.23%

Unemployment insurance0.31% on total payroll up to EUR 2,509,500; 1.23% on the excess

1.91%

Health insurance

approx. 0.51%

Accident insuranceAverage rate; varies by sector

0.06%

Group life insurance

approx. 19.9% – 20.8%

Total employer cost

Employee

7.30%

Earnings-related pension (TyEL)

0.89%

Unemployment insurance

1.98%

Health insuranceMedical care 1.10% plus daily allowance 0.88%; the daily allowance part is not collected on annual pay under EUR 17,255

10.17%

Total employee cost

Authority Payments

Authority PaymentPaid ToDue DateMethod

Authority Payment

Finnish Tax Administration

Paid To

Withholding tax and employer health insurance contribution

Due Date

12th day of the following month

Method

Earnings reported to the Incomes Register within 5 days of payment; paid via OmaVero

Authority Payment

Pension insurance company

Paid To

TyEL pension contributions

Due Date

Monthly, by the date set by the insurer

Method

Calculated from Incomes Register data and invoiced by the insurer

Minimum Wage & Working Hours

Minimum wage: None / —; No statutory minimum wage; set by sector agreements, many of which are generally binding
Standard working hours: 40 hours per week, 8 hours per day; Average working time, including overtime, may not exceed 48 hours per week
Overtime: Daily overtime: +50% for the first 2 hours and +100% after; weekly overtime: +50% for the first 8 hours and +100% after

Leave

Annual leave2.5 days per month of service (2 days in the first year)About 5 weeks per year; many collective agreements add a holiday bonus of 50% of holiday pay
Sick leaveFull pay for the day illness starts plus the next 9 working daysPaid by the employer for employees with 1+ month of service; Kela pays sickness allowance after that
Maternity leave40 working days of pregnancy leavePaid by Kela as pregnancy allowance
Parental leave160 working days per parentUp to 63 days can be transferred to the other parent; paid by Kela as parental allowance
Public holidaysAbout 11 days

Leave type	Duration	Notes
Annual leave	2.5 days per month of service (2 days in the first year)	About 5 weeks per year; many collective agreements add a holiday bonus of 50% of holiday pay
Sick leave	Full pay for the day illness starts plus the next 9 working days	Paid by the employer for employees with 1+ month of service; Kela pays sickness allowance after that
Maternity leave	40 working days of pregnancy leave	Paid by Kela as pregnancy allowance
Parental leave	160 working days per parent	Up to 63 days can be transferred to the other parent; paid by Kela as parental allowance
Public holidays	About 11 days

Termination

Probation period: Up to 6 months
Notice period: Employer notice: 14 days (under 1 year of service); 1 month (1–4 years); 2 months (4–8 years); 4 months (8–12 years); 6 months (12+ years)
Severance pay: No statutory severance; compensation of 3–24 months of pay can be awarded for unlawful dismissal
13th salary: Not mandatory
Notes: Dismissal requires a proper and weighty reason, such as performance, conduct, or financial grounds

Benefits

Occupational healthcareMandatory
Preventive occupational healthcare the employer must arrange; many employers also cover medical care
Lunch benefitCommon
Tax-advantaged meal vouchers or card
Exercise and culture benefitCommon
Tax-free allowance for sports and cultural activities

Visas & Work Permits

Residence permit for an employed person
Requirements
Job offer meeting collective agreement terms
Standard route for non-EU workers
Specialist residence permit
Requirements
Expert role with a salary above the specialist threshold
Eligible for fast-track processing
EU Blue Card
Requirements
Higher education and a job offer meeting the salary threshold
For highly qualified non-EU workers

FAQ

Sources

Last updated: November 1, 2026

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