EOR Service in Finland

Shraddha Saxena

Hire, Onboard and Pay Employees in Finland Quickly and Efficiently

Hiring in Finland at a glance

CURRENCY
Euro (€, EUR)
working hours
40 hours per week
public/bank holidays
13
capital
Helsinki
language
Finnish, Swedish
date format
DD:MM:YYYY
remote workers
1.2M
tax year
January 1st to December 31st
minimum hourly salary
No minimum wage
CURRENCY
Euro (€, EUR)
public/bank holidays
13
capital
Helsinki
language
Finnish, Swedish
date format
DD:MM:YYYY
tax year
January 1st to December 31st
payroll frequency
Monthly
GDP
$ 297 billion
working hours
40 hours per week

Employer of Record in Finland

Finland’s talent pool boasts an impressive pool of vocational and technical skills and has highly employable domestic talent. One effective way to tap into this talent pool is by engaging the services of an Employer of Record (EOR) in Finland.

EORs provide employers hiring from Finland the necessary expertise and infrastructure, to overcome the complexities of local employment regulations. An EOR acts as the legal employer and handles payroll, tax compliance, benefits administration for their customers. Relieved from these cross-border hassles, employers can focus on core business activities and ensure compliance with Finnish employment laws.

Why use Finland EOR?

The best part about partnering with a Finland EOR is the monetary savings employers. Amid a serious talent crunch, employers also get a speed advantage by partnering with an EOR. By offloading heavy and sensitive HR activities to in-market local experts, employers can focus time and resources on screening talent, employment engagement and so on.. 

Moreover, the Finnish employment landscape involves intricate payroll processes and adherence to various legal requirements. An EOR in Finland possesses the necessary knowledge and resources to efficiently manage payroll activities, including salary calculations, tax deductions, and social security contributions. This ensures accurate and timely payment of employees, minimizing the risk of errors and penalties.

EOR Costs in Finland

The fee structure of an EOR in Finland may vary depending on the number of employees, the complexity of payroll processes, and additional services required. Employers need to clarify the EOR’ fee structures and ensure transparency regarding the services included. Some EORs in Finland offer fixed pricing models. Under this model, employers pay a predetermined flat fee for their services. With fixed pricing, employers pay a consistent amount regardless of the number of employees or the complexity of payroll processes. 

Certain EORs may employ a percentage-based pricing model - the fee is calculated as a percentage of the total payroll. It can be suitable for businesses with fluctuating or expanding employee numbers or varying salary structures. 

Before partnering with their EORs, employers are advised to talk to the EORs about the fee models. When partnering with Gloroots’ EOR in Finland, employers always have a fixed fee . There are no additional costs involved.

Why work in Finland?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Risks of misclassification

The issue of "employee misclassification" also exists in Finland, referring to the incorrect classification of workers by employers. It occurs when an employer mislabels a worker as an independent contractor, depriving them of the employment rights and benefits entitled to regular employees, even if the worker performs duties similar to those of a permanent employee.

Engaging a PEO/EOR in Finland can help properly distinguish worker classifications and prepare accurate employment agreements. These experts ensure compliance with labor laws, precise classification of employees, accurate payroll processing, and comprehensive benefits administration. By entrusting employment-related responsibilities to knowledgeable professionals, businesses can focus on their core operations while ensuring compliance with Finnish labor regulations.

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Employing in Finland

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Income tax

Income Range (EUR) Tax Rate
Up to 19,900 0.00%
19,900 - 29,700 6.00%
29,700 - 49,000 17.25%
49,000 - 85,800 21.25%
Over 85,800 31.25%

Other Taxes and Social Security contribution:

Employer Payroll Contribution

Contribution Type Rate
TyEL Contribution (varies by company) 25.55%
Pension Insurance 1.53%
Health Insurance 0.52%
Health Insurance (exceeds 2,251,000 EUR) 2.06%
Unemployment Insurance (varies by salary) Based on salary
Accident Insurance Premium (varies) Varies by industry
Group Life Insurance Premium (if agreed) 27.60% to 29.14%

Separation

Termination Process

Starting from January 1, 2023, the process of ending employment depends on the employment contract, collective agreement, contract type, and the reason for ending it. Additionally, non-compete compensation clauses will require employers to provide compensation to employees who resign or are dismissed for cause, covering the period when they cannot compete after leaving the job.

Notice Period

The length of the notice period is determined by the Employment Contracts Act. According to this act, the employer and the employee can agree on notice periods, but they can't be longer than six months. Collective agreements may also have their own notice period rules.

If a collective agreement sets different notice periods than the statutory ones, both the employer and the employee must follow the collective agreement.

The specific notice duration depends on how long someone has worked and the reason for ending the employment. If the employer ends the contract:

  •  Less than one year of work – 14 days' notice
  • One to four years of work – one month's notice
  • Four to eight years of work – two months' notice
  • Eight to 12 years of work – four months' notice
  • Over 12 years of work – six months' notice

If the employee ends the contract:

  • Up to 5 years of work – 14 days' notice
  • More than five years of work – 1-month notice

Severance Pay

Finland doesn't have a mandatory severance payment requirement, but severance terms can be outlined in the employment agreement.

Probation Periods

In Finland, the trial period cannot go beyond six months.

Start Hiring in Finland today

When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR and similar data protection, etc. If it is tedious to set up infrastructure and start hiring, monitoring the everchanging compliance landscape is another uphill task. 

Gloroots helps you minimise all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. They do this by helping you with generating employment contracts, on-time payments, compliant benefits, while you focus only on screening talent. 

Our promise is a stress-free global employment experience for both you and your employee.

Contact our experts today to kickstart your global hiring campaign.

Grow your team in Finland

Employers operating in Finland must establish a local legal entity and leverage local resources to ensure compliance with employment regulations, payroll management, tax obligations, and benefits administration. The intricacies of Finnish employment laws require employers to navigate a complex landscape to ensure compliance. By partnering with local experts, businesses can streamline their operations and effectively manage their workforce, ensuring adherence to Finnish employment regulations and optimizing their business operations. With Gloroots' global Employer of Record (EoR) service, you can rely on our expertise to handle payroll, tax, benefits, and compliance, allowing you to focus on your employees and drive company growth.

Are you Ready to
Experience Seamless Hiring in Finland?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Finland.

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