Hire in Finland
Republic of Finland — 5.6 million population, $53,650 GDP per capita. Everything you need to know about employment law, tax, compliance and hiring in Finland.
Capital
Helsinki
Currency
Euro (EUR)
Languages
Finnish, Swedish
Time zones
UTC+2 (EET) / UTC+3 (EEST)
Hiring overview
- Typical time to hire
- 2-3 weeks for contractor, 3-6 weeks for full-time
- Entity requirement
- Finnish Oy (osakeyhtio). Registration at PRH (Patent and Registration Office).
- EOR available
- Yes — from $399/employee/month through a Corpshore entity
- Contractor of record
- Yes — from $39/worker/month
Employment law
- Standard workweek
- 37.5-40 hours (sector-dependent)
- Maximum weekly hours
- 40 hours
- Minimum annual leave
- 25 days (30 after 15 years with same employer; Annual Holidays Act)
- Public holidays
- 12 per year
- Maternity leave
- 160 days parental allowance per parent (320 days total, reformed 2022). Single parent gets all 320 days.
- Paternity leave
- 160 days per parent (from 2022 reform; previously 54 days)
- Notice period
- 14 days to 6 months depending on tenure
- Severance
- No statutory severance. Negotiated packages common in practice.
- Probation
- Up to 6 months
- Overtime rules
- 50% (first 2 hours), 100% thereafter. Or compensatory time off.
Tax overview
- Income tax range
- ~25-58% combined (progressive state + flat municipal ~20%)
- Corporate tax
- 20%
- Social contributions
- Employer: ~20% (TyEL pension, health, unemployment). Employee: ~7-9%.
- VAT / GST
- 25.5% (standard, increased from 24% in 2024); 14% food; 10% reduced
- Tax year
- Calendar year
- Treaty network
- Over 75 tax treaties
Compliance landscape
- Worker classification
- Employment Contracts Act defines employment. Light entrepreneurship (kevytyrittajyys) is a popular intermediate form.
- Data protection
- GDPR + Tietosuojalaki (Data Protection Act 2018). Tietosuojavaltuutetun toimisto (DPA) enforces.
- Right to work
- EU nationals: free movement. Non-EU: residence permit with right to work. Startup permit available.
- Non-compete
- Enforceable for up to 6 months (12 months with compensation). Must protect genuine trade secrets.
- Collective bargaining
- Generally binding collective agreements cover ~90% of workers. Tripartite system. 2023 reform weakened national-level bargaining.
Payment rails
SEPA standard. Siirto (Finnish instant payment) and MobilePay available. Finland has very high digital banking adoption.
Key considerations for hiring
- 2022 parental leave reform created one of the world's most gender-equal systems: 160 days per parent
- Helsinki is a major gaming hub (Supercell, Rovio, Remedy) and startup ecosystem
- Slush conference is one of Europe's largest startup events
- Finland consistently ranks #1 in education (PISA) and happiness indices
Business and cultural context: Finland
Business culture
Direct, quiet, and efficient. Finns value honesty and dislike small talk. Sauna culture extends to business networking. Meetings are punctual and decisions stick.
Key industries
Talent pool strengths
Historical context
Finland's gaming industry grew from Nokia's decline: when Nokia's mobile phone division collapsed in 2011-2014, thousands of engineers entered the startup ecosystem. Supercell (Clash of Clans) became Finland's fastest-growing company and sold to Tencent for $8.6B in 2016. Today, Finland has more game studios per capita than any other country.
Ready to hire in Finland?
Use our EOR service from $399/month and we handle employment law, payroll, tax and compliance in Finland for you.