HR Software for Finland

Leave Policy

Maternity Leave

Employees are entitled to 105 working days of paid vacation. Paid leave must begin 30 days before the child’s birth and end 75 days after the child’s due date.

The employee can extend the vacation by taking parental leave.

Paternity Leave

Employees are entitled to 54 days of paid paternity leave. A maximum of 18 days can overlap with maternity leave. The remainder of the paternity leave can be taken in a maximum of two separate periods before the child turns 2 years old.

The employee can extend the vacation by taking parental leave.

Parental Leave

Employees are entitled to 158 working days of parental leave. Both parents can decide how to divide the leave that should be taken immediately after maternity leave.

From the day on which parental leave ends until the child turns three, the employee is entitled to extended childcare leave.

Parental leave is a different type of leave than maternity and paternity leave. In some countries, parental/childcare leave is granted to parents in addition to normal leave.

Sick Leave

Employees are entitled to up to 300 days of paid sick leave.

In the first ten days, the employer pays 100% of the salary if the employee worked for more than a month, or 50% if the working time was less than a month.

From the eleventh day onwards, social security covers 40-60% of the salary.

Pay & Tax

Minimum Wage Requirements

The law does not contain any provisions regarding the minimum wage. Wages may vary depending on the collective agreement applicable to the company.

Individual Income Tax

Individual national income tax ranges from 6% to 32%. Income tax is calculated according to the progressive rates of national taxes. Employees also pay an additional flat rate of council tax (up to 10.86%). Several additional factors can affect overall rates, such as: B. church tax, the number of children and others

Gross Annual Income	National Tax Rate (%)
Up to EUR 30,000	11.5%
Up to EUR 40,000	17%
Up to EUR 50,000	21%
Over EUR 60,000	24.5%
Over EUR 70,000	27%

Payroll Cost

The cost to the employer is generally estimated at 20.45% of the employee’s wages.

Social Security – 1.16%
Public pension fund – 18.15%
Unemployment insurance* – 0.27%
Workers’ compensation insurance – 0.80%
Group contribution to health insurance – 0.07%
Professional health insurance – EUR 3.00

*up to an annual salary of EUR 2,337,000. An additional 1.09% is charged on the part of the salary that is above EUR 2,337,000/year.

Overtime Pay & Maximum Hours

The standard working hours are 7.5 hours per day and 37.5 hours per week, but the customer can change this to 40 hours per week and 8 hours per day if they wish. The standard working week is Monday to Friday.

Overtime pay is not mandatory.

Overtime must be agreed in the employment agreement (EA). If the employment contract provides for overtime, the hours outside of normal working hours are paid in accordance with the Working Hours Act.

The employer may pay employees compensation for additional hours:

150% of the hourly rate for the first 2 hours.
200% of the hourly rate for the following hours.

Termination

Termination Requirements

Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps in certain termination cases.

Both the employer and the employee can terminate agreements in Finland. If the decision is made by the employer, the employee must be consulted and given the opportunity to express his or her opinion.

Permitted terminations include:

Leak
Dismissal
Exit

Notice Period

The notice period is at least 14 days and increases depending on the length of the employment relationship and who initiates the termination.

Termination by the employer:

14 days if the length of service is less than 1 year.
1 month if you have been with the company for up to 4 years.
2 months with a length of service of up to 8 years.
4 months with a length of service of up to 12 years.
6 months if you have been with the company for more than 12 years.

Termination by the employee:

14 days if the length of service is less than 5 years.
1 month if you have been with the company for more than 5 years.

Severance for Employees

Severance pay is not required and will only be paid at the discretion of the employer. In exceptional cases, the employee can request severance pay from the employer.

Statutory Time Off

Paid Time Off

Both full-time and part-time employees are entitled to 30 days of paid time off per year. 2.5 days are credited per month. Annual leave is calculated from April 1st to the end of March.

Typically the season is May-September for summer vacations and October-April for winter vacations.

Public Holidays

There are 13 public holidays in Finland, which depend on the employee’s place of residence.

National holidays include:

New Year’s Day
Epiphany
Good Friday
Second Easter Day
Vappu
Ascension Day
Midsummer Eve
Midsummer Day
All Saints’ Day
Independence Day
Christmas Eve
Christmas Day
Second Day of Christmas

Onboarding

3 working days after signing the MSA and paying the deposit.

Additional Info

Employment Contract Details

Contracts can be in English or bilingual. They must be written and signed by both parties.

A contract must include:

Name
Start date
Job description
Working Hours
Remuneration and Benefits
Annual leave
Probation (if applicable)
Termination conditions
Qualifications of the employee
Duration
Place of Work
Collective Agreement (if applicable*)

IceHrm Finland is not subject to a collective agreement at this stage. Please note that the collective agreements in some industries provide for restrictions on the use of temporary workers.

Backdating contracts is permitted in certain circumstances.

Probation Period

For fixed-term contracts, half of the employment period may be less than one year or 180 days.
For permanent contracts, the maximum duration is 180 days.

Probationary periods are not mandatory.