FICountry guide · Finland

HR Services in Finland

HR support for US, UK and international companies hiring in Finland: Finnish contracts and policies, payroll coordination, compliance and recruitment. Build your Finnish team without building an HR department first.

Helsinki Cathedral above the harbor in Helsinki, Finland
Capital: HelsinkiCurrency: EUROfficial languages: Finnish, SwedishPopulation: 5.7 million
Key facts for employers
Minimum wageNo statutory minimum: set by collective agreements
Maximum working time8 hours a day and 40 hours a week as regular hours, and 48 hours a week on average including overtime
Paid annual leave2.5 days per full month worked (2 days if employed under a year by March 31), up to 30 days a year, Saturdays included
Employer costs on top of wagesAbout 21% of gross wages (Eurostat, 2025)

Last reviewed October 2026. Collective agreements can set other terms.

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HR services in Finland

Expand Into Finland With an HR Partner Who Knows Finnish Labor Law

Finland ranks 8th of 139 economies in the Global Innovation Index 2026 and spends 3.22% of GDP on R&D, the fourth-highest share in the EU. It also brings detailed employment rules: pay floors from collective agreements instead of a statutory minimum wage, notice periods set by length of service, overtime that needs the employee’s consent, key terms in writing within 7 days of the start, and co-operation duties from 20 employees.

Europe HR Solutions is your HR partner for Finland. We prepare Finnish contracts, policies and handbooks, put payroll foundations in place and coordinate your payroll provider, support hiring and reward, and review your HR practices as Finnish law changes.

Expanding beyond Finland? The same team covers 27+ European countries, so you manage one relationship instead of a provider in every market.

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HR outsourcing

HR Outsourcing in Finland With Europe HR Solutions

One senior Europe HR Solutions team coordinates your HR in Finland, working with independent in-country HR professionals from our European network who understand Finnish employment practice.

Everyday HR, handled

Payroll coordination, recruitment, compliance and employee relations for your team in Finland, handled as one service, so you can focus on growing the business.

Compliance with Finnish labor law

We make sure your HR operations comply with Finnish law, and review your contracts and policies as statutory rules and collective agreements change.

Cost-effective HR

Outsourcing means you don’t need your own HR team in Finland, which reduces cost and frees resources for growth.

Flexible engagement

We work ad hoc, on an interim basis, by project or on a retainer, from a few weeks to several years.

Employment law

Key Employment Regulations in Finland

Finnish law sets the baseline. Collective agreements for your sector add to it, so check both before you hire.

Show all 12 regulationsHide the regulations

Contracts and written terms

No written form is required. Unless a written contract covers them, employees get the key terms in writing: the basics within 7 days, the rest within a month (not for 3 hours a week or less). Fixed terms you initiate need a justified reason, except up to a year with someone not employed by you in five years (since June 1, 2026) or unemployed for 12 months.

Working hours and overtime

Regular hours are up to 8 a day and 40 a week, or 40 on average over up to 52 weeks. With overtime, the limit is 48 hours a week on average over four months. Overtime needs the employee’s consent and earns 50% for the first 2 daily hours, 100% after, and 50% for weekly overtime. Sunday work earns 100%.

Minimum wage and collective agreements

Finland has no statutory minimum wage. Employers must apply at least the generally binding collective agreement for their sector, and contract terms that conflict with it are void; employers bound by another national agreement, usually through their employers’ association, may apply that one instead. Where no agreement applies and pay isn’t agreed, the employee is owed usual and reasonable pay.

Paid annual leave (vuosiloma)

Employees earn 2.5 days per full month worked (2 if employed under a year by March 31): up to 30 weekdays (Monday to Saturday) a year. As a rule, 24 days go in the summer season, May 2 to September 30, and the rest by the next season. Staff paid weekly or monthly keep that pay on leave.

Sick pay (sairausajan palkka)

If employment has lasted at least a month, the employer pays full salary for the day the illness starts and the next 9 weekdays (Monday to Saturday); if less, 50%. After that, the sickness allowance from Kela (the Social Insurance Institution) can take over, and an employer that keeps paying salary receives the allowance instead, up to the salary paid.

Pregnancy, parental and childcare leave

Kela pays allowances for up to 40 weekdays (Monday to Saturday) of pregnancy leave and 160 of parental leave per parent, and a parent can transfer up to 63 of their days. The law doesn’t require the employer to pay salary during family leave. Childcare leave is available until the child turns 3.

Probation (koeaika)

If agreed, probation can last up to 6 months from the start, and at most half the term of a fixed-term contract. You can extend it a month per 30 days of sick or family leave if you tell the employee before it ends. Either side can end the contract during it, but not on discriminatory grounds or grounds unrelated to probation.

Notice and dismissal (irtisanominen)

Unless agreed otherwise, employer notice runs from 14 days (up to a year of service) to 6 months (over 12 years). Since January 1, 2026, personal-grounds dismissal needs a proper reason, as a rule after a warning, and economic dismissal a substantial and permanent drop in work. Unjustified dismissal costs up to 24 months’ pay, or 30 for shop stewards.

Employee representatives

From 20 regular employees, the Co-operation Act requires dialogue with staff or their representatives, and change negotiations before economic dismissals, layoffs, part-time moves or essential changes to terms: from 50 even for one person, from 20 to 49 when 20 or more are affected within 90 days, as a rule. Representatives are shop stewards or elected representatives, plus an occupational safety representative at workplaces of 10 or more.

Occupational health care (työterveyshuolto)

Every employer must arrange and pay for preventive occupational health care for its employees, from the first hire, in the scope the work and its risks require. That means a written contract with a provider, public, private or your own unit, setting out the arrangements and the services covered, plus a written action plan reviewed every year. The core is prevention; general medical care can be added but isn’t required. Kela refunds part of the cost under the Health Insurance Act. Leaving staff without occupational health care is a punishable offense.

Social security

Non-wage costs, such as employer social contributions, make up 17% of total labor costs in Finland, or about 21% on top of gross wages (Eurostat, 2025). As a rule, wage payments are reported to the Incomes Register by the fifth calendar day after payday.

Pay transparency

Finland missed the June 7, 2026 deadline for the EU Pay Transparency Directive. The government’s bill (HE 129/2026), pending in Parliament, is proposed to apply from January 1, 2027. Already, employers with at least 30 employees must draw up an equality plan with a pay survey, as a rule at least every two years.

Why Finland

The Benefits of Expanding to Finland

What Finland offers companies that set up properly.

No. 8

Innovation ranking

Finland ranks 8th of 139 economies in the Global Innovation Index 2026 (WIPO).

3.22%

R&D investment

Finland spent 3.22% of GDP on R&D in 2024, fourth highest in the EU, above the EU’s estimated 2.26% (Eurostat).

No. 1 (tied)

Patent output

Finland shares 1st place of 139 with Japan, Korea, Sweden and Switzerland for PCT patents by inventor origin, relative to GDP (Global Innovation Index 2026).

No. 4

Research talent

Finland has 8,707 full-time-equivalent researchers per million people, 4th of 139 economies (Global Innovation Index 2026).

€74 billion

Exports

Finnish goods exports reached €74.3 billion in 2025, about a third of them machinery and transport equipment (Eurostat).

No. 1

Rule of law

Finland ranks 1st of 139 economies for rule of law (Global Innovation Index 2026).

What to plan for

The Challenges of Expanding to Finland

Six things to plan for before your first hire.

01

Pay set by collective agreements

With no statutory minimum wage, generally binding collective agreements set pay and conditions in their sectors, also for employers outside employers’ associations.

02

Employment costs

Non-wage costs add about 21% on top of gross wages (Eurostat, 2025), and the employer pays the first days of sick leave.

03

Notice that grows with service

Unless agreed otherwise, employer notice rises from 14 days to 6 months after more than 12 years of service.

04

Overtime needs consent

Overtime needs consent, given each time or for a short period; total hours are capped at 48 a week on average over four months.

05

Co-operation from 20 employees

Dialogue with staff from 20 employees; change negotiations before economic dismissals from 50, or from 20 to 49 when 20 or more are affected in 90 days.

06

Summer holiday season

As a rule, 24 days of annual leave go in the summer season, May 2 to September 30, so plan cover for those months.

Where companies get caught

Key HR Compliance Risks in Finland

Eight mistakes to avoid in Finland, and what each one leads to.

High risk

Fixed term without a valid reason

A fixed-term contract made on your initiative without a justified reason, outside the one-year exceptions, counts as open-ended.

High risk

Dismissal without a proper reason

Dismissing on personal grounds without a proper reason, or without a warning where one is required, costs 3 to 24 months’ pay in compensation, or up to 30 for shop stewards.

High risk

Pregnant employee dismissed

Dismissal during pregnancy or family leave is presumed linked to it unless you prove otherwise. On pregnancy, parental or childcare leave, economic dismissal needs a full shutdown. Cost: up to 24 months’ pay as a rule, plus possible Equality Act compensation.

High risk

Pay not reported on time

Report wages to the Incomes Register by the fifth calendar day after payday. Filing after the 8th of the next month brings a late fee, plus up to €15,000 monthly after 45 days.

Medium risk

Key terms not in writing

Unless the terms are in a written contract, the basics are due in writing within 7 days and the rest within a month. Breaching this duty is an offense punishable by a fine.

Medium risk

Working-time limits broken

Exceeding the 48-hour average, cutting rest periods below the legal minimum or not drawing up a shift roster is a working-time offense punishable by a fine.

Medium risk

Collective agreement ignored

Contract terms that conflict with the generally binding collective agreement for your sector are void, and the agreement’s terms apply instead.

Medium risk

Immediate termination too late

The right to end a contract with immediate effect for a very serious breach lapses, as a rule, 14 days after you learn of the grounds.

Not sure where you stand? Our HR Compliance Audit gives you a structured review of your HR compliance risk in Finland, with a clear action plan.

Where international companies invest

Key Sectors in Finland

Finland’s leading export sectors in 2025, based on Eurostat trade data.

Machinery and transport equipment32.1% of goods exports in 2025, led by specialized industrial machinery and electrical machinery.
Paper, metals and other materials24.0% of goods exports in 2025, led by paper and paperboard (8.6%) and iron and steel (6.0%).
Chemicals10.8% of goods exports in 2025.
Free guide

Free HR Guide for Finland

Cover of the free guide 5 Key HR Compliance Risks in Finland and How to Avoid Them

5 Key HR Compliance Risks in Finland and How to Avoid Them

Your essential guide to Finnish labor laws and best practices.

Download now PDF · 11 pages

Want to read more first? See our article on HR and compliance in Finland.

FAQ

Hiring in Finland: Your Questions Answered

Questions companies ask before they hire in Finland.

Do we need written employment contracts in Finland?

Not by law. A contract can be oral, written or electronic, but unless the terms are in a written contract, you must, as a rule, give the employee a written statement of the key terms: the basics within 7 days of the start and the rest within a month. Failing to do so can be fined. We draft contracts that comply with Finnish law.

Is there a probation period in Finland?

Yes, if agreed: up to 6 months from the start, and at most half of a fixed term. You can extend it a month per 30 days of sick or family leave if you tell the employee before it ends. Either side can end the contract during probation, but not on discriminatory grounds or grounds unrelated to probation, and you must hear the employee first. We make sure your contracts reflect these rules.

How much does an employee in Finland cost on top of salary?

Non-wage costs, such as employer social contributions, add about 21% on top of gross wages (Eurostat, 2025). If employment has lasted at least a month, the employer also pays full salary for the day an employee falls ill and the next 9 weekdays (Monday to Saturday). Our Compensation & Benefits Strategy builds a reward framework aligned with Finnish law, market data and internal equity.

How many hours can staff in Finland work?

Regular hours are up to 8 a day and 40 a week; with overtime, 48 a week on average over four months, or a longer period under a collective agreement. Overtime needs consent and earns 50% for the first 2 daily hours, 100% after. Daily rest is at least 11 hours, as a rule; managers who set their own hours are excluded. We structure work schedules that comply and still leave room for flexibility.

What happens when an employee in Finland is off sick?

If employment has lasted at least a month, you pay full salary for the day the illness starts and the next 9 weekdays (Monday to Saturday); if less, 50%. Then Kela’s sickness allowance can take over; if you keep paying salary, the allowance goes to you, up to the salary paid. Employees must give reliable proof of illness on request. We put clear sick leave policies in place.

How much paid leave do employees in Finland get?

Employees earn 2.5 days per full month worked, or 2 if employed under a year by March 31: up to 30 weekdays (Monday to Saturday) a year. As a rule, 24 days go in the summer season, May 2 to September 30, and staff paid weekly or monthly keep that pay on leave. We keep you compliant with leave entitlements and help you offer a competitive benefits package.

Is it really that hard to terminate employees in Finland?

It’s strict, not impossible. Unless agreed otherwise, your notice runs from 14 days to 6 months, by length of service. Since January 1, 2026, personal-grounds dismissal needs a proper reason, as a rule after a warning and a hearing, and economic dismissal a substantial and permanent drop in work. Unjustified dismissal costs up to 24 months’ pay (30 for shop stewards), at least 3 on personal grounds. We guide you through every step.

Can we put everyone on fixed-term contracts in Finland?

Not as a rule. A fixed term you initiate needs a justified reason, and repeated fixed terms can’t cover a permanent need. Two exceptions allow up to a year without one: a first contract with someone you haven’t employed in five years (since June 1, 2026), or someone unemployed for the past 12 months. One you initiate that breaks these rules counts as open-ended. We make sure every fixed-term contract meets these rules.

Do collective agreements apply to us in Finland?

If a generally binding collective agreement covers your sector, yes, even outside an employers’ association: apply at least its terms; conflicting contract terms are void. Employers bound by another national agreement, usually through their association, may apply that one instead. With no agreement and no agreed pay, you owe usual and reasonable pay. We keep you compliant with any agreement that applies, with as much flexibility as it allows.

Do we need employee representatives in Finland?

From 20 regular employees, the Co-operation Act requires dialogue with staff or their representatives, and change negotiations before economic dismissals, layoffs, part-time moves or essential changes to terms: from 50 even for one person, from 20 to 49 when 20 or more are affected within 90 days, as a rule. Representatives are shop stewards or elected representatives, plus an occupational safety representative at workplaces of 10 or more. We guide you in working with employee representatives.

What does pay transparency mean for us in Finland?

Finland missed the June 7, 2026 deadline for the EU Pay Transparency Directive. Its bill (HE 129/2026), still in Parliament, would apply from January 1, 2027: starting pay or its range for applicants, pay information on request and, from 2028, gender pay gap reports from employers of 150 or more (100 to 149 from 2031). Already, employers with at least 30 employees need an equality plan with a pay survey, as a rule at least every two years. Our Compensation & Benefits Strategy covers EU Pay Transparency readiness.

What happens if we fail a labor inspection in Finland?

Occupational safety and health inspectors (Lupa- ja valvontavirasto, since January 1, 2026) give written instructions or a notice to fix breaches, such as missing written terms or working-time records. If you don’t comply, the authority can order a fix under a conditional fine, and reports suspected work offenses to the police. Missing written terms and breaking working-time limits are punishable by fines. We conduct regular compliance audits so your documentation is ready for inspection.

Free consultation

Plan Your Finnish Expansion With an HR Specialist

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