Finland is on your radar, and for good reason. You’re looking at a country where the workforce comes with Ph.D.-level skills as standard, innovation isn’t just a buzzword, and things work the way they’re supposed to. The talent pool is deep. The business environment is solid. You’re ready to make your move.
But once you start looking into hiring in Finland, you realize it’s not as simple as extending an offer letter. That straightforward job offer is not so straightforward when Finnish employment law enters the chat. There are contracts with requirements you’ve never seen. Pay scales tied to agreements you didn’t know existed. Payroll systems that report in real-time to authorities.
This isn’t meant to scare you off—it’s meant to prepare you. This guide breaks down exactly what you need to hire and pay employees in Finland. No surprises, no guesswork, just clear steps to build your Finnish team the right way.
Understanding Finnish hiring fundamentals
Before you welcome your first team member, you need the basics in place. Think of it as your “entry checklist” for doing business the right way.
- Register with the Finnish Trade Register if you’re setting up a local entity.
- Get an employer registration number from the Finnish Tax Administration.
- Secure mandatory accident insurance and pension coverage (TyEL).
- Draft a written employment contract that follows Finnish labor law.
- Identify the collective bargaining agreement (CBA) that applies to your sector.
- Enroll with the Incomes Register to report wages electronically.
Be careful to NOT:
- Rely on verbal agreements—written contracts are the law.
- Overlook CBAs that set minimum pay and benefits.
- Miss Incomes Register deadlines, which can lead to fines. Automate this reporting to reduce your risk of noncompliance.
Navigating employment contracts and collective agreements
Every Finnish employment relationship starts with a written contract. It needs to cover job duties, pay, hours, benefits, notice periods, and the applicable CBA. CBAs aren’t optional. They’re legally binding standards for wages, overtime, and leave. Even if you’re not a union member, they typically cover your employees.
Establishing legal presence and market entry options
When entering Finland, you have three main options for hiring Finnish talent:
- Direct employment. Register as a non-resident employer and handle payroll and compliance on your own.
- Local entity setup. Open a Finnish subsidiary or branch. This gives you control, but it’s expensive and complex.
- Employer of Record (EOR). Work with an Employer of Record that hires your Finnish team and handles payroll, compliance, and taxes while you steer daily operations.
Many companies partner with an EOR as a quick and safe way to test the market.
Complying with Finnish payroll and compensation
Payroll in Finland is highly structured. Missing a step can mean penalties.
- Pay cycle: Most employees are paid monthly.
- Real-time reporting: Each payroll run must be reported to the Incomes Register.
- Tax withholding: Based on employee tax cards from the Finnish Tax Administration.
- Employer contributions: Pension (TyEL), unemployment insurance, accident insurance, health insurance, and group life.
Pay and overtime
Finland doesn’t set a universal minimum wage. Instead, CBAs set industry-specific minimums. Overtime pay typically starts at 50% above standard pay and can double for extended hours.
Taxes and social security
Income tax is progressive. Municipal tax adds another layer, averaging between 4.7% and 10.9%. Withholdings must match each employee’s tax card.
Essential employment benefits and leave obligations
Benefits matter in Finland, and compliance means covering the basics:
| Benefit Type | Statutory Minimum | Common Enhancements |
|---|---|---|
| Annual leave | 24–30 days/year (tenure-based) | Extra days off, wellness programs |
| Sick leave | Initially paid by the employer | Extended health coverage |
| Parental leave | Shared between parents | Flexible return-to-work options |
| Other perks | — | Meal vouchers, commuting subsidies |
Hiring and paying international and remote workers
When your team is spread across borders, rules shift.
- Non-EU employees need a residence and work permit.
- EU/EEA employees can work freely, but must register their stay.
- Remote work may change tax residency and compliance obligations.
- Using an EOR to hire internationally keeps you compliant while supporting distributed teams.
Considering partnering with an EOR provider
What is an Employer of Record (EOR)?
An EOR legally employs your workforce. They manage payroll, taxes, benefits, and contracts while you focus on daily operations.
How an EOR helps:
- Drafts compliant employment contracts.
- Runs payroll and withholds the right taxes.
- Handles contributions to pensions, health, and insurance.
- Files reports with Finnish authorities.
Choosing the right EOR
Not all EORs know how to operate in Finland. You need one that’s been there, done that, and has the track record to prove it. Check their compliance history—mistakes in Finland get expensive fast. And make sure they tell you the real price upfront. No “surprise” fees three months in when you discover basic payroll actually costs extra.
Smart companies think bigger than just Finland. Your EOR should help you expand beyond one country when you’re ready. Learn how this works in our guide to Global Employment and EOR Services: Why Use Them?.
For the latest rules straight from the source, bookmark the Finnish Tax Administration and the Ministry of Economic Affairs and Employment. Regulations change, and you’ll want to know when they do. Better yet, pick an EOR that monitors these changes so you don’t have to.
Avoiding common mistakes and ensuring compliance
It’s easy to stumble when hiring in a new market. Common errors include:
- Ignoring CBAs, leading to retroactive claims.
- Missing Incomes Register deadlines, triggering fines.
- Misclassifying contractors as employees, creating back-pay obligations.
The fix? Stay proactive. Automate reporting, double-check classifications, and keep up with government updates.
Ongoing reporting and resources
Compliance doesn’t stop once someone’s hired. You need to:
- Report wages and benefits to the Incomes Register every payroll run.
- Monitor updates from the Ministry of Economic Affairs and Employment and Finnish Tax Administration.
- Whenever you need help understanding immigration or work authorization requirements, explore our Finland Work Visa and Authorization Guide.
Cross the Finnish hiring line with Pebl
You came here to hire talent in Finland, not to become an expert in Nordic employment law. The good news is Pebl has that expertise, so you don’t need it. We already know which collective bargaining agreements apply to your industry. We’ve mastered the real-time payroll reporting. We speak fluent Finnish employment compliance. Our employer of record services in Finland are already helping employers like you grow stellar global teams or expand internationally.
Here’s how it works: You find the talent, we handle everything else. We draft compliant contracts, respect CBAs, run accurate payroll, and pay the right taxes.
Whether you’re hiring one engineer in Helsinki or building an entire team across Finland, we make it feel as simple as hiring in your home country. Actually, simpler—because we handle the paperwork you usually do yourself. And if Finland’s just the beginning, we’re ready to help you hire in 185+ countries with the same ease.
Your competition is already building teams in Finland. The only question is whether you’ll spend months figuring it out yourself or start hiring next week.
Let’s talk about getting your Finnish team in place. Fast.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.
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