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Employer of Record Finland

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Employer of Record Finland

Teaming up with an Employer of Record in Finland simplifies the hiring process, minimizes administrative tasks, and fosters business development and achievement.

Currency

Euro

Population

5.6 Million

Capital City

Helsinki

Minimum Wage

Finnish and Swedish

Local Language

No legal minimum

Working Hours

40 hours per week

Employer of Record in Finland

  • Streamlines hiring
  • Handles all employment-related tasks
  • Functions as a legitimate employer
  • Employs workers in a compliant manner

How does an Employer of Record Finland work?

Agility

We take care of the legal side of hiring employees, such as managing human resources, benefits, payroll, and taxes.

Company

Supervises the duties and performance of designated employees.

Employee

Carries out the given tasks, similar to any other staff member.

Cost Calculator

Use our easy calculator to explore the employment costs in Finland. Share a bit more information, and we’ll deliver a detailed salary breakdown straight to your inbox.

Payment Frequency

Monthly on the last day of the month, unless otherwise agreed.

 

Employee Tax – 10.05% to 43.98%

Pension insurance: 7.15% – 8.65%

Unemployment insurance: 1.5%

Municipality tax: 4.36% – 10.86%

Church tax: 1% – 2.1%

 

Employer Tax – 27.69% to 29.39%

Health insurance: 1.16%

Pension insurance: 25.12% on average

Accident insurance: 0.7%

Unemployment insurance: 0.5% – 2.05%

 

Probation Period

6 months maximum, except if special work-related training lasts longer than 6 months.

 

Employment Law

Employment Agreement: Written employment contract

Remote Work: Protections for home working

Health & Safety: Occupational health and safety measures

Payslip: A right to a payslip each month

Right to Equal Treatment: Non-discrimination based on gender

Overtime Pay: Extra pay for hours worked beyond regular hours

Whistleblower Protection: Safeguards for reporting misconduct or wrongdoing

Privacy Protection: Data privacy or confidentiality measures

 

Employee Termination

An employment agreement can be terminated with notice for a valid reason, as specified in the regulation or collective agreement. If the termination is unjustified, the employer may have to pay compensation.

If an employee can be reassigned or trained for other roles, termination cannot be based on financial reasons. Dismissed employees may be eligible for unemployment benefits from KELA or an unemployment fund but must be a member of the fund to receive benefits.

There is no statutory right to severance payment, though it can be agreed upon in the employment contract.

Employee Benefits

Statutory Benefits

Medical Coverage: Employers must provide occupational health care to all employees, regardless of their employment terms or duration.

Accident Insurance: Employers are required to have accident insurance for their employees to cover work-related accidents and occupational diseases.

Pension: Employers are responsible for providing and paying for pension benefits for employees aged 17 to 67.

Common Additional Benefits

Accommodation: Company housing or housing allowance

Company Car: Provided vehiclePhone: Company-issued phone

Meals: Meal allowance or company meals

Sports and Culture Benefits: Wellness or recreation benefits

Bonuses: Performance-based incentives

Stock Options: Equity-based compensation

Supplementary Health Insurance: Additional health coverage

Learning & Development: Professional development or training

Statutory Leave

24-30 days off and bank holidays
1 year sick leave
Family leave (maternity and paternity) total of 320 days equally split between each parent.
Pregnant parent is entitled to 40 days on top of that.

FAQ

Think of it like this: Agility EOR becomes the legal employer of your employees, taking care of all the paperwork and compliance headaches.

Agility EOR
  • We manage the onboarding process and ensure everything’s in order before your employee starts
  • We make sure your employees are treated fairly and compliantly in their relevant territory
  • We take care of all HR matters, and can answer any and all HR queries you may have e.g. maternity/paternity leave, holidays, sick pay, and more
  • We provide compliant contracts, process local payroll, and file taxes
  • We issue payslips and handle payments to the employee and authorities
Your Company
  • You find and manage your employees’ daily tasks
  • You support their development through their work
  • You follow our guidance on employment laws and best practices
  • You ensure payroll bills are paid to Agility EOR on time

 

Benefits of using an Employer of Record (EOR)

  • Faster and easier hiring: No need to set up your own legal entity.
  • Reduced risk and compliance burden: We handle the legal and administrative complexities.
  • More time and resources: Focus on your core business while we manage your employees.

Employees working for a Finland Employer of Record receive legal protections and are provided with a standard employment contract. This includes benefits like maternity leave, paid time off, and sick pay, as well as potential tax advantages. It’s important to note that Finland’s public healthcare system extends coverage to all residents, not just employees.

Yes, as long as the worker is working for other companies, is able to decide how to do their own work, and can send another contractor in their absence.

In Finland, if a worker is exclusively committed to your company and follows your organization’s instructions, they must be categorized as an employee. Not doing so violates Finland’s employment regulations.

Misclassifying an employee in Finland can result in significant penalties, the accountability to settle unpaid vacation pay and social security contributions, the possible requirement to set up a local office, and even legal proceedings from the employee for violated employment rights.

The initial steps to establishing your business in Finland involve registering it with the Commercial Register and obtaining a trade license from the relevant authorities.

Establishing a local business in Finland is quite simple. But the real challenge begins after the initial setup, when you have to calculate and process payroll every month, file taxes, provide benefits, and comply with changing rules and regulations.

Also establishing a physical office for tax purposes, opening a Finland bank account (which often requires in-person presence), managing payroll software compliant with Finland regulations, and fulfilling tax filing obligations add complexities to the overall setup.

Hiring people in Finland means adhering to specific legal obligations. In simpler terms, HR compliance ensures your company strictly follows all employment and work practice regulations.

But why is it so important? Employers in Finland must fulfil specific obligations when hiring employees. HR compliance involves ensuring that your company’s policies and procedures adhere to all relevant laws and regulations concerning employment and work practices.

Adhering to local employment laws in Finland is crucial for the smooth operation of your business. These laws are designed to protect employees, secure their rights, and reduce your liability as an employer. Compliance entails following local labor laws, sick leave and illness benefits, annual leave, minimum wage, tax credits, and working hour regulations.

By teaming up with Agility EOR as your Employer of Record in Finland, you can rationalize your tax and social security responsibilities. We take care of all the necessary paperwork and payments related to your employees, guaranteeing full compliance and allowing you to concentrate on managing your business without any worries.

Agility EOR handles the complexities of Finland employment law and compliance, while your company is responsible for the day-to-day management and communication with your team. This involves addressing performance concerns, enforcing disciplinary measures as necessary, and fostering a positive work environment through clear communication.

Agility EOR handles the legal side of things in Finland, so you can focus on managing your team and their daily tasks.

In Finland, both employers and employees are responsible for contributing to various taxes, including income tax, social security contributions, VAT, and corporate tax. Employers withhold income tax from employee salaries and pay social security contributions on their behalf. Employees contribute to social security and may also pay church tax.

Employees working for a Finland Employer of Record receive legal protections and are provided with a standard employment contract. This includes benefits like maternity leave, paid time off, and sick pay, as well as potential tax advantages. It’s important to note that Finland’s public healthcare system extends coverage to all residents, not just employees.

Agility EOR takes care of your HR compliance headache:

Trusted Partners: We work closely with top employment lawyers and advisors in Finland to ensure that your employment contracts and essential paperwork comply with local legal standards

In-Depth Knowledge: Our expertise covers various topics in Finland employment law, such as payroll, social security, data privacy, notice periods, and regulations for remote work.

Swift Action: If any problems arise, our in-house team is ready to provide quick assistance and support.

Wondering if expanding in Finland is right for you?

Read on or speak to a member of our team now

Finland Employer of Record Benefits

When you choose Agility EOR to expand in Finland, we guarantee an EOR Service tailored to the needs of your business

Compliance

We are on top of regulatory changes in Finland so you can relax.

Cost reduction

Allow our economies of scale to work in your favour.

High Service Levels

You and your employees have a dedicated account manager.

Fixed Cost Pricing

We will agree our professional fees up front based on your needs – no nasty surprises!

Consolidated Invoicing & Payments

Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.

Fast delivery

You can have 'boots on the ground' within days on our infrastructure.

Reduced Risk

All wage taxes are remitted in full to the Finland authorities by professionals ensuring liabilities are met, giving you peace of mind.

Supply Chain Transparency

We only pay employees through local full employed solutions meaning Finland payroll tax is paid on all funds.

Save Time and Money

Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.

Download our full Finland Employment Guide

Find out all about employing in Finland

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