Professional Employer Organization (PEO) in Finland

Professional Employer Organization (PEO) in Finland
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Employ contractors and employees in 160+ countries
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global talent

starting at $199

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Employ contractors and employees in 160+ countries
Employ and pay
global talent

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Global PEO in Finland

Finland is a globally recognized country for its well-rounded healthcare system, high income, its emphasis on education, and overall quality of life. It’s a great place to live not only for natives but for expats too, with many highly skilled professionals flocking to the country.

Thanks to the surge in remote work and the help of professional organizations like Skuad, you can easily hire employees from Finland (or anywhere else in the world). 

When you partner with a professional employer organization, you can tap into a global workforce that will take your business to new heights. Keep reading to learn more about what professional employer organizations do and how they can help your business grow.

What is a PEO?

A professional employer organization (PEO) is a service provider that takes on the regular role and administrative functions of a human resources (HR) team as well as a legal team. This might include tasks such as managing your payroll, ensuring your foreign employees are paid in the correct currency, curating competitive employee benefits packages, and ensuring that your business remains compliant with local labor laws.

By assuming these functions, a PEO can take away the burden from startups and small businesses that don’t have the capital or manpower to expand into other countries.

By working with a PEO, you can build an international team of employees working remotely from multiple countries around the globe — quickly and cheaply!

If you’re thinking about trying out PEO services in Finland (or anywhere else in the world), get in touch with a team member at Skuad today.

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What are the benefits of using a PEO provider in Finland?

Working with a PEO in Finland is the best way to open up a world of opportunities for your startup, small, or medium-sized business. There are numerous benefits to utilizing a PEO, such as: 

Hire from the best of the Finnish and global talent pool

Finding and hiring the best candidate for the job looks much different today than it did a few years ago. The entire concept of remote work has allowed businesses and employees from around the world to connect without limits.

As mentioned previously, Finland is an appealing country for natives and expats alike, but the country is known for having one of the best education systems in the world. I’m sure we can all agree, that a quality education paves the way for a skilled professional workforce.

Using a PEO in Finland means you can access the country’s ever-growing talent pool of young, skilled professionals eager for opportunity. 

Become a globally competitive employer

You won’t be the only business sourcing from an international pool of talent — but you can gain an edge on your competition.

With PEO services in Finland, you’ll have a team of people to ensure your international hires receive the statutory benefits they’re legally entitled to and then some. This will help you attract and retain the most qualified candidates.

Save on unnecessary costs

Without a professional employer organization in Finland, you’re looking at some significant hiring expenses that even larger corporations don’t want to take on. In fact, many enterprise-level businesses partner with PEOs simply because it’s the cheaper and faster alternative.

Without a PEO, you’d have to build your own HR and legal team to help manage your employees and make sure your business remains compliant with the local legislation in Finland.

Gain in-depth insights into new global markets

Finland is part of the European Union (EU), which operates as a single market economy. It’s also close to other important markets including the Asian, Middle Eastern, and Northern African markets.

Your new Finnish employees can provide you with unique insights into the European market, which can help you expand further as your business grows. 

Avoid setting up your own legal entity in Finland

With a PEO in Finland, you would have to set up your own legal business entity in the country. This can be incredibly costly and time-consuming considering you would need an extensive legal team.

You’d also need to account for travel and accommodations since you’ll have to be present during the time of incorporation.

When you use a PEO, you don’t have to worry about setting up your own business entity in Finland because they’ve already established one for you (and everywhere else). That means they can act as a legal business entity on your behalf as well as your employer of record (EOR) in Finland. 

Become culturally aware

If you plan to hire internationally, one of the most important things you’ll need to do is be mindful of each country’s cultural differences. Your PEO in Finland will ensure that you’re informed about the country’s various cultural practices.

For example, Finnish people believe in workplace equality and a “flat hierarchy,” meaning that it’s normal and expected for employers to take employee opinions into account when planning projects and making decisions.

Want to learn more about the benefits of working with a PEO in Finland? Contact the Skuad team today.

Remain compliant

Each country will have different labor laws regarding what employers are expected to provide their employees. However, if you don’t comply with these laws, your business could end up facing hefty fines and even business bans.

Labor laws typically range from payroll compliance to ensuring you’re giving employees the correct amount of paid leave.

Let’s cover the specifics about hiring in Finland: 


  • Finnish employees are paid in Euros once per month or every two weeks.
  • There is no universal minimum wage in Finland, however, the average salary is €3,228 per month.
  • Employment contracts are expected in Finland. They should also be very concise, strong, and in accordance with the Finnish trade union.
  • Probationary periods typically last for up to six months and should be stated in the employment contract.
  • When an employee is terminated, they must receive notice within 14 days of their termination date. Severance pay is not mandatory.
  • The standard Finnish workweek is 40 hours split into 8-hour days. Maximum overtime is capped at 250 hours per year.

Tax and employer contributions 

Finland’s income tax rates for employees are progressive, ranging between 6% and 31.25% for thresholds ranging from €19,200 to €82,900+.

The country also has a municipal tax on employee income which fluctuates between 16.5% and 22.5% plus a church tax of 1%-2%. The corporate tax rate is currently set at 20%.

As for employer contributions, the total cost can be as high as 21.% to account for social support while employees can expect to pay 1.36% of their salaries for health insurance, 7.15% for pension insurance, and 1.4% for unemployment insurance. A lot to take in, we know.

Paid Leave

  • Paid vacation days in Finland are earned according to the time spent working during each “leave-working month,” starting with two days per leave-working month.
  • After one full working month, employees are entitled to up to 9 days of paid sick leave.
  • Parental leave in total is set at 317 weekdays:
  • Women are entitled to 105 days of paid maternity leave.
  • Men are entitled to 54 working days of paid paternity leave.
  • The remaining days may be split by either parent as they choose.

Not quite got your head around the Finnish labor market? No need to worry. Find out more about how Skuad’s PEO services can ensure you stay compliant by booking a demo today!

What does it cost to build a team in Finland?

The costs associated with Finland’s company registration begin with €6,475 for the first year’s incorporation costs and €14,698 in engagement amounts. This includes opening a corporate bank account, government fees, and more. Not cheap.

However, that’s not including the cost of travel and accommodations — which you’ll also need to factor in over the course of several months.

Of course, when you partner with a PEO in Finland, you won’t have to spend that much money. You also won’t have to spend that much time in a foreign country overseeing your own legal team and living out of a hotel.

Pricing for PEO services will vary among the different providers and packages they offer. With Skuad, you can get started right away for free. You can also cancel at any time, no questions asked.

Our PEO services in Finland and everywhere else allow you to start hiring and onboarding international employees right away, beginning at just $19 per month. If you ask us, that’s pretty reasonable when it comes to the cost of doing business in Finland.

We also offer EOR services and custom pricing for enterprise-level businesses. Just get in touch with our sales team to get your custom quote today.

Are you ready to get started with PEO services in Finland to grow your business? Book a demo with us today to see what we’re all about!

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Employ contractors and employees in 160+ countries

Get started
peach illusgreen illus

Employ contractors and employees in 160+ countries

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Building a remote team?

Employ exceptional talent, anywhere, anytime!

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