Dear Applicant,

This guide walks you through the statutory employee benefits you need to provide in
Finland. We’ll also help you learn how to set up a competitive and compliant
compensation package that will attract both Finnish and international employees.

Guaranteed Benefits in Finland

The Ministry of Labor, trade unions and collective bargaining agreements governs
several guaranteed employee benefits in Finland.

Minimum wage:
As per the Labor law of Finland, there is no standard minimum wage for the country.
However, multiple collective agreements decide the minimum wage for a sector, and
the companies must adhere to them.

Working hours and overtime:

The Working Time Act governs the working hours of employees in Finland. The
employees should work 8 hours daily or 40 hours a week across 52 weeks.
The employees should take an hour’s break after every 6 hours of continuous
working.
Employees who work beyond 40 hours a week are entitled to overtime pay.
For the first extra 2 hours, they receive an additional 50% of their regular salary. If
the overtime is more than 2 hours a week, the employees are paid an additional
100% of their regular salary.

Paid leaves:
The employees of Finland are entitled to 24 to 30 days of leave benefits in Finland
annually once they complete a year with the company.
However, employees who are yet to complete a year with the organization are
entitled to a mandatory 2.5-day leave per month for their first year.

Public holidays:
There are 11 public holidays in Finland, and the employees get a paid-time-off on
these holidays.
Employees working on a public holiday are entitled to a payment of 200% of their
regular salary.

Sick leaves:
As per the Employment Contracts Act, employees in Finland can take unlimited sick
leaves.
However, the employer pays a 100% salary to the employees on sick leave for the
first nine days.
The employees must apply to Kela for sickness benefits if the sick leave goes beyond
nine days for up to 300 days.

Maternity leaves:
Female employees can take maternity benefits in Finland for 50 days before their
due date.
They receive maternity benefits from Kela, Finland’s Independent Social Security
Institute, for up to 105 working days.
The female employees receive a tax-free lump sum of €170 during their maternity
leave.

Parental leaves:
For 158 days, Kela provides a parental allowance. Parents can work part-time or stay
at home and are entitled to a partial allowance during this period.

Annual bonus:
There are no laws that mandate an annual bonus payment in Finland.
However, a few collective agreements have introduced the provision of a holiday
bonus where employees are paid 50% of their salary.

Health insurance:
All employees in Finland are entitled to health insurance coverage.
Employees injured on the job or contracting a disease may be eligible for benefits
such as survivors’ or disability pensions, daily allowances, handicap payments, or
burial grants in the event of deaths.