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Employer of Record Finland

Skuad’s Finland Employer of Record (EOR) solution helps your business expand without the need for an entity setup. Our unified and automated global human resource (HR) platform enables you to expedite the onboarding of your remote team, manage their payroll, benefits, taxation, probation, and termination in compliance with the local laws. In addition, we help you streamline the global expansion process with the able assistance of our international network of experts from over 150 countries. Book a demo with Skuad to kick-start your expansion into Finland.

Finland At a Glance

Population: 5,549,886 people (in 2024)

Currency: Euro

Capital City: Helsinki

Languages Spoken: English, Finnish, Swedish

GDP: $320.26 billions (2024)

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Employment in Finland

Since the year 2015, Finland has witnessed a slow yet steady rise in the employment rate, with over 2.531 million people employed in Finland in the year 2020.

The Ministry of Economic Affairs and Employment of Finland is responsible for the labor legislation governing the employment contract law and employment in Finland. Employing international employees is not vastly different from local employees in Finland, apart from certain extra obligations to be fulfilled by the employer.

However, the Finland employment laws are extensive and confusing for companies from other countries. It is advisable to partner with a local Employer of Record, Finland, well-versed with the laws of the land to minimize the potential for conflict.

Let us understand a few aspects of employment in Finland:

Entitlement Explanation
Statutory Working Hours in Finland 40 hours per week, with the workday not exceeding 8 hours.
Overtime Eligibility If the above-mentioned statutory working hours exceed, employees will receive compulsory overtime compensation as follows:
  • For the first two overtime hours, the employees are paid an overtime incentive at an increased rate of 150%.
  • For any overtime beyond 2 hours, employees are paid at double the rate.
  • Employees can enter into employment agreements in Finland with their employers to exchange the overtime wages for time off.
  • Employees are entitled to refuse overtime work, and the employee must separately agree for every instance of overtime work.
Paid Holidays in Finland The public holidays in Finland are broadly classified into Christian and non-Christian holidays. They are as follows:
  • New Year’s Day (January 01, 2021)
  • Epiphany (January 06, 2021)
  • Good Friday (April 02, 2021)
  • Easter Sunday (April 04, 2021)
  • Easter Monday (April 05, 2021)
  • May Day (May 01, 2021)
  • Ascension Day (May 13, 2021)
  • Whit Sunday (May 23, 2021)
  • Midsummer’s Eve (June 25, 2021)
  • Midsummer’s Day (June 26, 2021)
  • All Saint’s Day (November 06, 2021)
  • Independence Day (December 06, 2021)
  • Christmas Eve (December 24, 2021)
  • Christmas Day (December 25, 2021)
  • St. Shephen’s Day (December 26, 2021)
Sick Leaves in Finland In Finland, employers are responsible for paying the salary during their sick leaves based on their employment contracts and agreements. However, the amount of salary paid during illness depends mainly on the length of employment:
  • If the employment continues for a month or more before falling sick, the employer is obligated to pay full salary for up to nine days from the day the employee falls ill.
  • If the employment relationship is shorter than a month, the employer is obligated to pay 50% of the salary.
Maternity and Paternity Leave in Finland

Upon the birth of a child, both male and female employees are entitled to family leave that enables them to stay at home and look after the child.

Family leave includes the following.

  • Maternity Leave – The duration of which is a total of 164 days each. The mother can choose to work during the maternity leave if doing so would not endanger the safety of the mother and that of her child. However, the mother isn’t allowed to work two weeks before the due date and two weeks post-giving birth.
  • Paternity Leave – the duration of which is 54 days. It is important to note that this benefit cannot be transferred to the mother, and it can be availed only until the child turns two.
  • Child-care Leave – once the parental leave period ends, the father or mother of the child can avail of unpaid child-care leave to care for the child until they turn three.
  • Parental Leave – 158 days long parental leave can be taken by either the mother or the father after the maternity leave period is over. However, it is important to note that both the parents cannot avail parental leave at the same time.
The combined length of maternity, paternity, and parental leaves is approximately 317 weekdays, which roughly covers the first year after the child is born.
Annual Leave Accrual Entitlement in Finland Any month in which the employee has worked for at least 14 days or at least 35 hours is considered the “leave earning month.”
  • Employees in Finland earn annual leave as per the hours worked during the “leave earning months.”
  • After working for a complete year, these annual leaves can increase up to 2.5 days per leave-earning month.

Employees are paid regular wages for the annual holidays before the holiday begins – including non-temporary bonuses.

A typical collective bargaining agreement stipulates the holiday bonus at 50% of the pay.

Leave Expiry In concurrence with employees, employers decide when these annual leaves can be availed. If any portion of the employee’s annual leave over 24 days remains unused, they have a right to carry over and utilize such leaves in any calendar year that they may choose to.
Accrued Leave at Termination If the employment is terminated, the employees have a right to receive compensation for any accrued holidays that remain unused.
Employee Protection and Anti-discrimination Rights

As per Finnish laws, every employee must be treated equally and no one should be discriminated against based on sex, age, ethnicity, nationality, religious beliefs, language, disability, opinion, sexual orientation, or health at the time of recruitment or workplace in general.

The matters related to equality fall under the purview of the Equality Act and the Employment Contracts Act. These acts ensure:

  • Equality in recruitment – every person seeking a job must be treated justly and equally. Employers must judge potential employees purely based on merit.
  • Equality in the workplace – no employer shall discriminate against employees for distribution of work, offering career advancement opportunities, or terminating the employment contract. Such discrimination at work amounts to a crime, and aggrieved employees can seek help from the occupational safety and health authorities or trade unions.
  • Equality between men and women – all men and women are equal and must be treated equally in employment, remuneration, and working conditions.
Confidentiality of Personal Information All the processing of employees’ data must comply with the Act on the Protection of Privacy in Working Life and the General Data Protection Regulation (GDPR) of the European Union. The Act on Protection of Privacy in Working Life is exclusively applicable to employment relationships (contractual and public service). Accordingly, the employers can only collect personal data:
  • From the employee directly.
  • From other sources only with the express consent from the employee.

To ensure your expansion endeavors are in compliance with the Finland employment laws, Contact Skuad today.

Kinds of Employment Contracts Finland

The employment contracts in Finland can either be open-ended or temporary for a full-time job and part-time jobs.

Usually, employment contracts do not specify a time limit, meaning that the arrangement can be terminated by either party upon serving the agreed-upon notice. Temporary contracts are entered into for specific reasons, and they end when the requirement is met without either party serving any notice.

Apart from these, agency employees can also be employed by the employers wherein the employee works for the agency’s client under the supervision of the client. Legally, agency employees and regular employees have the same duties. Agency contracts are also open-ended and can be terminated in the same manner as conventional employment contracts.

Employers can also hire employees in Finland for on-the-job training and apprenticeships.

As a generally accepted best practice, a strong employment contract must spell out the terms of employment such as compensation, benefits, and the conditions for termination. Joining hands with an Employer of Record, Finland, is the best way to go about it.

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Hiring in Finland

Hiring and onboarding of employees in Finland must be done in compliance with Finland labor laws and employment laws. Along with the written rules and regulations, collective bargaining also plays a major role in the job market of Finland.

The top talents in Finland can be recruited using the following process:

  • Once there is a reasonable understanding of the intricacies of Finland’s job market and workplace culture, you can begin by advertising your jobs on relevant job search websites such as Careerjet, Work in Finland, Indeed, etc.7 Be sure to design well-defined and to-the-point job descriptions for the maximum impact.
  • After shortlisting the best job applications, prepare to organize personal interviews. Personal interviews offer prospective employees a chance to understand your organization’s work culture.
  • Arguably the most important aspect for the hiring companies in Finland is drafting a solid employment contract. It should stipulate every small detail about the employment, right from salary to the rights and obligations of the employer and as well as the employee.
  • Upon hiring an employee, the next step is to conduct an in-depth onboarding where the employee is introduced to the code of conduct and other aspects of the job description.

This long-drawn and time-consuming process can be outsourced by partnering with an Employer of Record, Finland. Skuad can help you find the best talents in the country and hire them for you, on your behalf, so that you can get to business, quickly and efficiently.

Book a demo today!

Probation & Termination

The standard probation period in the employment contracts in Finland can be six months, during which, either party can terminate the contract without serving any notice period.

After the probationary period ends, the employer can opt for termination of the employment contract if the employee displays grave negligence and fails to perform the duties, upon giving due notice.

The duration of notice varies with the length of employment. If the employment has lasted for 5 years or less, the notice period is 14 days and if it has lasted for more than 5 years, the notice period is a month. However, the employer and the employee can agree to a shorter notice period in case the employee finds another job before the date of termination.

Learn More.

EOR Solutions

Business expansion is a long-drawn process that calls for extensive planning, especially when expanding to a foreign country. It is complicated and can take up to several months to complete but by choosing the EOR route for hiring employees in Finland, you can fast-track the expansion process. Employer of Record Finland (EOR) solutions by Skuad can make expansion to Finland much simpler and a lot quicker for business. Our global outreach and a tech-enriched HR platform ensure compliance with local labor laws by managing employment responsibilities such as monthly payroll, work permits, employment contracts as well as taxation for your employees in Finland.

Book a demo today!

Types of Visas in Finland

To expand your business to Finland, you will need to ensure that your employees obtain work visas in Finland. There are several categories of Finland work visas:

Types of Work Visas Explanation
Business Visa With a business visa, the employees can visit Finland and stay for 90 days. Since a business visa doesn’t allow the employees to work, they are most suitable for onboarding employees who shall be working remotely.
Residence permit for self-employment This permit applies to private entrepreneurs, other partners, and some employees within your organization. You must, however, register your business with the Trade Register at the National Board of Patents and Registration for obtaining this kind of permit.
Residence permit for an employed person

This is the most common and most relevant visa category if you plan to expand your business in Finland.

This is the most common and most relevant visa category if you plan to expand your business in Finland.

There are three kinds of residence permits:

  • Temporary
  • Continuous
  • Permanent

When an employee initially seeks residence in Finland, they must apply for a Temporary residence permit. To obtain the residence permit, employees will need:

  • A valid employment contract.
  • A valid passport, along with the latest passport-sized photograph.
  • A complete and error-free application for a Residence permit for an employed person.
  • Medical Certifications.

Contact Skuad to know more.

Work Permits

With local partners in Finland, Skuad can sponsor the work permits for immigrating workers. As Employers of Record, Finland, you can trust Skuad to take care of all the required documentation for work permits. Skuad’s HR platform enables your organization to handle your employees’ Finland work visa requirements and day-to-day management.

Can Skuad Sponsor Work Permit in Finland Yes
Processing Time Three months
Work Permit Finland Process
  • It begins with the employee being offered a position at a Finnish company and entering into an employment contract. It is impossible to get a Finland work permit without a job offer.
  • For foreigners, a Finland work permit can be applied for through the ‘Enter Finland’ services.
  • Upon applying, the employee must visit the Finnish embassy with the original documents.
  • The application will be reviewed by the Employment and Economic Development Office and approved by the Finnish Immigration Service if all the applicable requirements for a residence permit are met.
  • Upon approval, the residence permit will be issued by the Finnish Embassy.
Work Permit Validity The validity of the first residence permit is up to one year, after which the foreigner can renew it at any police station in Finland.
Work Permit Process for different countries

Switzerland and the EU member states don’t need a residence permit to work in Finland legally. However, they must register themselves through the ‘Enter Finland’ system.

Citizens of the Nordic countries must simply notify the Local Register Office if they want to live in Finland.

Change of Sponsor Within Finland If the sponsor changes, employees must submit a new application.
When Can an Employee Travel to Finland Employees can only enter Finland after the residence permit has been issued.
Can spouses work on dependent visas? Yes, spouses can work if they have residence permits based on family ties.
Termination of Work Permit

Employees may request the authorities to cancel their work permit via an application, along with a brief explanation of the reasons submitted to this effect.

Authorities can also cancel the work permit if:

  • False information was submitted with the application.
  • The grounds on which the permit was granted no longer exist.
  • Another country in the Schengen area requests Finland to do so.
  • If the employee permanently moves abroad or lives outside Finland for two continuous years.

Talk to Skuad experts today.

Payroll & taxes in Finland

If you are planning to take your business to Finland, there are several rules and regulations that you must take into consideration. For instance, as a foreign company operating in Finland, you must abide by the country’s payroll and taxation laws such as income tax, VAT, withholding tax, and other employee compensation regulations. There are two ways to go about it – you can either set up an entity with an in-house team that looks after these matters or you can hire the services of an Employer of Record, Finland, thereby making the management easier and ensuring absolute compliance with Finnish laws.

Find out more!

Taxes in Finland

Employer Taxation

Tax Explanation
Financial Year End Date 31st December
Corporate Tax The Corporate Income Tax Rate in Finland is 20%.
Withholding Tax

15 – 20% (payments to foreign corporations)

30% (payments to non-resident individuals)

Finland payroll tax rates There are no Finland employer payroll taxes.
Employers Social Insurance Contributions Employers must contribute to the following:
  • Employee health benefits Finland
  • Earnings-related pension insurance
  • Unemployment insurance
  • Occupational accident and disease insurance
  • Group-life insurance
Reimbursements Kela, the Social Insurance Institution in Finland, reimburses reimbursable medical expenses.

Employee Taxation

Tax Explanation
Income Tax Rates
Tax Base (in Euros) Tax %
18,100 - 27,200 6%
27,200 - 44,800 17.25%
44,800 - 78,500 21.25%
78,500 and above 31.25%
Employees Social Security and statutory contributions Employees do not make statutory contributions
Sales Tax (VAT) The general VAT rate is 24%.
Tax Return Yes


Bonuses are popular, but no official guidelines exist. Discriminatory incentive plans are not permitted.

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You can expand your business in Finland by setting up a subsidiary company. Before opening a subsidiary company in Finland, you must consider a few questions. What industry do you operate in? What kind of business will prove the most beneficial for you? Where will the subsidiary be headquartered? Are there any other matters that need consideration?

The process is governed by the country’s Limited Liability Companies Act and is as follows:

  • Decide whether you should opt for a private or a public limited company.
  • Freeze your management composition.
  • Deposit the minimum share capital in a bank account (newly opened).
  • Submit all the requisite documents – Memorandum of Association, information about the directors and shareholders, etc.
  • Submit your LLC’s Start-up Notification Application along with the required documents.
  • Register for social security and statutory contribution.

The local laws and regulations governing a subsidiary in Finland can be complex and overwhelming. Rather than risking non-compliance due to ignorance of the law, partner with Skuad, an Employer of Record, Finland – so that your expansion into the international horizon can be smooth and hassle-free.

Get in touch with us today!


A Professional Employer Organization (PEO) can lease employees to an employer by way of a joint employment relationship. This allows you to share and manage all the employee-related responsibilities by outsourcing the core HR functions such as payroll outsourcing. And while the Professional Employer Organization in Finland can significantly relieve you of the many burdens of HR management, it comes with its own set of disadvantages.

It can lead you to lose control over one of the key aspects of your business administration – employees. It brings in an outsider’s influence into your company and can compromise the security of your employee paperwork.

Skuad's EOR solution is a good way to expand your business in Finland without setting up a separate entity. Our solutions help you to stay focused on your business and leave all business compliances, payroll processing and complete management work to us. Connect with Skuad to know more.

Learn More.


If you think your company is ready to expand its operations to Finland, you don’t need to go through the entire process alone. Skuad’s HR platform and Employer of Record services can help you every step of the way. Want to know more about how Skuad can help your business?

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1) What is the employer of record in Finland?

An Employer of Record (EOR) in Finland, like Skuad, helps companies outsource the employment of their staff within the country, handling responsibilities like payroll, taxes, and compliance with Finland’s labor laws.  

2) What is the EU employer of record?

An EU Employer of Record acts as your legal employer in Europe, simplifying workforce management. They handle HR tasks like payroll, taxes, and legal compliance across borders. This lets you hire top European talent without setting up local entities in each country.

3) What is an international EOR?

Employer of Record services help companies seeking to leverage international talent pools. They function as a cloud-based HR solution, assuming legal employer responsibilities in your target market. This eliminates the need for a local entity setup, a traditionally complex and resource-intensive process.

4) What is the employer of record for foreign employees?

An Employer of Record (EOR) unlocks global talent. They become your legal employer overseas, handling payroll, taxes, and compliance. No local entity setup is required. Focus on finding the best talent worldwide, while EORs handle the HR complexities in each country.

5) What is the difference between eor and PEO?

An employer of record (EOR) legally employs individuals on behalf of another company and handles all compliance, payroll, and HR tasks. A Professional Employer Organization (PEO) co-employs staff, sharing responsibilities with the client company but typically requires the client to have an established business entity in the country.

EOR in 
best value
Pay monthly at a discounted rate with a 12-month commitment
(billed annually)
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Employ contractors and employees in 160+ countries

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EOR in 
(billed annually)
Pay monthly at a discounted rate with a 12-month commitment
(billed monthly)
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Employ contractors and employees in 160+ countries

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Employ contractors and employees in 160+ countries