Please fill in your information below and download our total cost estimate for an employee with the specified gross salary level in .
- Employee Cost Calculator
- Finland
Employee cost calculator in Finland
Looking to hire in Finland? Our Employee Cost Calculator gives you a clear view of expenses including taxes and employer contributions.
Trusted by industry leaders around the world
Get started with Tarmack-hiring and paying global talent is just a few clicks away.
Request a demo
Frequently Asked Questions (FAQs)
What are the mandatory employer contributions and statutory benefits in Finland?
Employers in Finland are required to make statutory contributions including TyEL pension insurance (approximately 17.5% of gross salary), unemployment insurance (between 0.52% and 2.06%), accident insurance, group life insurance, and employer’s health insurance contribution (around 1.34%). Statutory benefits also include paid annual leave (per Annual Holidays Act), paid sick leave, parental leave, and holiday bonus if specified by collective agreements.
How are payroll taxes and social security contributions calculated for employees in Finland?
Payroll taxes in Finland include both employer and employee social security contributions, with the employer typically paying around 20–25% of gross salary in total contributions. Employers are responsible for withholding income tax (per the employee’s tax card), TyEL pension contributions, unemployment insurance, and employee health insurance contributions, all reported and remitted via the Incomes Register (Tulorekisteri).
What are common hidden or indirect employment costs in Finland?
Common hidden costs include the holiday bonus (lomaraha), often mandated by collective agreements and typically 50% of annual holiday pay, as well as administrative costs related to statutory reporting and payroll processing. Severance pay may apply depending on the reason for termination and terms of the Employment Contracts Act (Työsopimuslaki), and costs can also arise from required occupational health care services.
What legal requirements impact employment costs in Finland?
Employment contracts in Finland must comply with the Employment Contracts Act and often reflect terms from sector-specific collective agreements (TES), which may stipulate minimum pay levels, working hours (maximum 40 hours/week under the Working Hours Act), overtime rates, and holiday pay rules. There is no statutory national minimum wage, but collective agreements set binding minimums for most industries, directly affecting total compensation costs.
What are key employment practices in Finland that influence cost and compliance?
Typical practices include a probationary period of up to six months, strong employee protection in termination procedures, and the prevalence of permanent (toistaiseksi voimassa oleva) and fixed-term (määräaikainen) contracts. It is also customary to provide occupational health care, and employers often offer meal benefits or commuter allowances to remain competitive, especially in white-collar sectors.
