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UPDATED NOV 5, 2026💡 A general guide to hiring and managing employees in Finland through Toku. Use it to understand local employment topics and plan your questions. Toku will confirm the process and terms applicable to your hire.
ℹ️ Country-specific processes: Kenya, Finland, Vietnam, Serbia and Argentina. These guides provide general information. Additional or different steps may apply, and Toku will work with you directly to confirm the requirements for your situation. Continue submitting information and requests through Toku. Toku cannot offer or arrange Toku-sponsored benefits in these countries. Your applicable statutory entitlements and individual employment terms remain subject to local requirements and your signed agreement.
💲 Finland pricing: Finland has a set country rate starting at USD 599 per employee per month. This rate applies in place of the standard fee in your order form.
At a Glance
| Item | Detail |
|---|---|
| Currency | Euro (EUR) |
| Payroll cycle | Monthly. Toku runs one payroll per month in Finland. |
| Estimated employer costs on top of salary | Approximately 20-25%, varying by industry |
| Onboarding lead time | Approximately four weeks, subject to confirmation of the start date and completion of all required steps |
| Standard working week | 40 hours (37.5 under many collective agreements) |
| Probation period | Up to 6 months, set in the employment agreement |
| Annual leave | Up to 30 statutory holiday days (up to 24 in the first year); Saturdays generally count. |
| 13th month salary | Not required (a holiday bonus of 50% of holiday pay applies under most collective agreements) |
| Minimum notice on termination | 14 days (rises with tenure) |
Onboarding a New Hire
Plan for approximately four weeks for onboarding. Submit the hire through Toku so we can confirm support, country-specific pricing, required information, signatures, registrations and the proposed start date. Additional requirements may apply, and the start date is confirmed individually.
Submit the new hire through the Toku platform for the employment agreement, statutory registrations and payroll setup. See Onboard Contributors as a Client Admin in Toku for the steps. Toku will confirm the expected onboarding timing for your hire.
Employer Costs
On top of each employee's gross salary, you pay the following employer contributions (2026 rates):
| Cost | Rate | Notes |
|---|---|---|
| Earnings-related pension (TyEL) | 17.10% average | Varies by employer size and industry |
| Health insurance | 1.91% | Of gross wages |
| Unemployment insurance | 0.31% | Rises to 1.23% on payroll above EUR 2,509,500 |
| Accident and occupational disease insurance | 0.50-5.00% | Varies by industry risk class |
| Group life insurance | ~0.06% | Per collective agreement |
| Total | Approximately 19.88-25.30% |
As a rule of thumb, total cost of employment is roughly 120-125% of gross salary. Also budget for the holiday bonus (lomaraha): most collective agreements require an extra payment of 50% of the employee's holiday pay, paid in connection with annual leave.
Employees pay their own contributions too: pension (7.30%), unemployment insurance (0.89%), and health insurance contributions (about 2%), plus progressive income tax and municipal tax. These are withheld from gross salary, not added on top of your costs. Toku calculates and remits all of the above.
Compensation & Payroll
Toku runs one payroll per month in Finland, and employees receive a payslip each cycle showing gross pay, deductions, and net pay. Finland has no statutory national minimum wage: minimum pay is set by the sector's collective bargaining agreement, which covers roughly 90% of the workforce. The holiday bonus (50% of holiday pay under most collective agreements) is paid in connection with annual leave, typically in the summer.
Employment Contracts & Probation
- Toku coordinates the employment-agreement process and confirms the applicable signing requirements. Review the final agreement for the employer details and individual terms.
- Indefinite-term contracts are the default. Fixed-term contracts need a justified reason (such as a project or substitute arrangement); repeated fixed terms without justification convert to indefinite-term.
- Probation can be agreed for up to 6 months and is set in the employment agreement. During probation, either party may end the contract without notice, provided the grounds are not discriminatory or improper.
Working Hours
The statutory standard is 40 hours per week (8 per day), though many collective agreements set 37.5 hours. Average weekly hours including overtime may not exceed 48 over a four-month period, and annual overtime is capped at 250 hours. Overtime needs the employee's consent and is paid at 150% for the first two daily hours and 200% after that; Sunday and public holiday work is paid at 200%.
Leave Entitlements
| Leave | Entitlement | Who pays |
|---|---|---|
| Annual leave (first year) | 2 statutory holiday days per qualifying month, up to 24 days, at full pay. Saturdays generally count. | Employer |
| Annual leave (after first year) | 2.5 statutory holiday days per qualifying month, up to 30 days, at full pay. Saturdays generally count. | Employer |
| Holiday bonus | 50% of holiday pay, per collective agreement | Employer |
| Sick leave | Day of illness plus 9 days paid by employer, then Kela sickness allowance (about 70% of income) | Employer, then Kela |
| Maternity leave | 40 working days at about 70% of income | Kela |
| Parental leave | 320 days shared between parents (160 each, 63 transferable) at about 70% of income | Kela |
| Childcare leave | Until the child turns 3, with a flat home care allowance | Kela |
| Study leave | Up to 2 years per 5-year period after 12 months of service, unpaid | N/A |
The holiday accrual year runs from 1 April to 31 March, with the main summer holiday usually taken between May and September. Parental leave is funded by Kela (the national social insurance institution), so it adds no direct salary cost to you.
Public Holidays (2026)
Finland observes 13 official public holidays in 2026, plus Midsummer Eve and Christmas Eve, which are treated as paid days off under most collective agreements.
| Date | Holiday |
|---|---|
| 1 January | New Year's Day |
| 6 January | Epiphany |
| 3 April | Good Friday |
| 5 April | Easter Sunday |
| 6 April | Easter Monday |
| 1 May | May Day |
| 14 May | Ascension Day |
| 24 May | Whit Sunday |
| 19 June | Midsummer Eve (de facto holiday) |
| 20 June | Midsummer Day |
| 31 October | All Saints' Day |
| 6 December | Independence Day |
| 24 December | Christmas Eve (de facto holiday) |
| 25 December | Christmas Day |
| 26 December | St. Stephen's Day |
Holidays falling on a weekend are not moved to a weekday.
Benefits: Required vs. Common Extras
Statutory (included in employer costs above): earnings-related pension (TyEL), national health insurance through Kela (medical care, sickness and parental allowances), unemployment insurance, and occupational accident insurance. Employers must also provide occupational healthcare covering at minimum preventive care, and most extend it to general practitioner and specialist visits.
Toku cannot offer or arrange Toku-sponsored benefits in Finland. We will work with you directly to clarify any applicable local arrangements. The statutory overview above is general guidance.
Common extras in the Finnish market include extended occupational healthcare, lunch benefits (tax-favored up to EUR 14.00 per day in 2026), sports and cultural benefits (tax-exempt up to EUR 400 per year), commuting benefits, and supplementary pensions. Toku can advise on the cost impact of any extras you want to offer.
Ending Employment
In Finland, Toku needs at least three weeks' notice to process a termination and its paperwork, so please submit it in the Toku platform as early as possible.
Finnish law requires "proper and weighty" grounds for employer-initiated termination, and the employee must be given a chance to be heard first, so involve Toku early if you are considering ending an employment relationship. For the process, see How to Terminate an Employee or Contractor.
| Service | Notice |
|---|---|
| Up to 1 year | 14 days |
| 1-4 years | 1 month |
| 4-8 years | 2 months |
| 8-12 years | 4 months |
| Over 12 years | 6 months |
Finland has no statutory severance pay, regardless of tenure or grounds. In practice, severance is often negotiated in mutual termination agreements, especially for senior employees. If a termination is found unlawful, compensation of 3 to 24 months' salary can be awarded, which is why grounds and process matter.
Annual Leave at Termination
This section describes statutory annual leave. Any additional contractual or company-provided leave above the statutory minimum may follow different carryover, expiry, or payout rules under the employee's agreement or applicable policy, subject to local law.
Statutory leave termination payout: Generally required. Unused accrued statutory holiday is typically paid as holiday compensation when employment ends.
Statutory carryover / look-back: Carryover follows Finland's statutory holiday-credit-year and saved-leave rules rather than a simple calendar-year reset.
Admin responsibility: Track current, transferred, and saved leave separately and monitor balances during the holiday year. Do not apply a generic year-end forfeiture rule.
Important exceptions: Collective agreements can affect holiday bonus and related treatment. Toku should review saved or historic leave before final termination amounts are communicated.
See the Annual Leave / PTO Carryover & Termination Payout Guide for the cross-country framework.
Hiring Someone from Overseas?
EU, EEA, and Swiss nationals can work in Finland without a permit; they only register their residence for stays over three months. Other nationals need a residence permit before starting work, with routes including the Residence Permit for an Employed Person, the Specialist Residence Permit, and the EU Blue Card; the general work-based permit requires a gross salary of at least EUR 1,600 per month in 2026, and processing typically takes 4 to 12 weeks. Talk to Toku before extending an offer to a candidate who needs sponsorship.
Last updated November 5, 2026 (onboarding link and annual leave guidance only). Last verified July 2026. This guide is for general information and doesn't constitute legal or tax advice. Your Toku account manager can confirm specifics for your situation.