Finland Country Guide 2022

Finland

Finland is a northers European country that is very large, but also quite sparsely populated. It has world-class architecture and design, but is also full of beautiful scenery, and is very environmentally conscious. 

Finland boasts free education on all levels to everyone including foreigners, and has excellent healthcare. The average salaries are quite high, which is a bonus considering the cost of living is one of the highest in Europe.

Finnish people are very friendly and family-oriented, and Finland is very safe and has a low crime rate. However, it is best to keep in mind that Finland has very harsh and cold winters, and the Finnish language is extremely difficult to learn, which means that even though the vast majority of people living in Finland speak English, knowledge of Finnish or Swedish is often required for certain job opportunities.

  • Capital: Helsinki
  • Spoken Languages: Finnish, Swedish
  • Currency: Euro (EUR)
  • Minimum monthly wage: N/A

Entry Visa

Citizens of EU/EFTA Member States, Switzerland, Liechtenstein and Nordic countries can enter Finland with an identity card or a valid passport.

Work Permit / Residence Permit

Citizens of EU/EFTA Member States, Switzerland, Liechtenstein and Nordic countries can live and work without a work or residence permit in Finland for a period of 3 months; after that, they must obtain a Residence Permit at the local police station.

Other foreign nationals must obtain a Residence Permit to enter Finland; the application can be made at a Finnish Embassy or consulate in the individual’s home country, and can take up to 4 months to be processed. A job offer from a Finnish company is required. In order to obtain a job in Finland, the individual must have a good grasp of the Finnish language; the required proficiency level depends on the sector.

If staying longer than a year, all foreign nationals  need to register with the Finnish Population Information System, which can be done through the nearest Local Register office. Individuals with a residence permit may also apply for permanent residence after 5 years of legally living and working in Finland.

Social Security Registration

Citizens of EU/EFTA Member States, Switzerland, Liechtenstein and Nordic countries can live and work without a work or residence permit in Finland for a period of 3 months; after that, they must obtain a Residence Permit at the local police station.

Other foreign nationals must obtain a Residence Permit to enter Finland; the application can be made at a Finnish Embassy or consulate in the individual’s home country, and can take up to 4 months to be processed. A job offer from a Finnish company is required. In order to obtain a job in Finland, the individual must have a good grasp of the Finnish language; the required proficiency level depends on the sector.

If staying longer than a year, all foreign nationals  need to register with the Finnish Population Information System, which can be done through the nearest Local Register office. Individuals with a residence permit may also apply for permanent residence after 5 years of legally living and working in Finland.

Working Hours

A standard working week in Finland is 8 hours a day/40 hours a week.

The maximum amount of overtime is 250 hours per calendar year, and overtime pay is increased by 50% for the first 2 hours a day, and 100% for any consecutive hours, as well as Sundays.

Public Holidays

  • 01 January (New Year’s Day)
  • 06 January (Epiphany)
  • Good Friday (Not a standard date, usually March/April)
  • Easter Monday (Not a standard date, usually March/April, after Good Friday)
  • 01 May (May Day)
  • Ascension Day (39 days after Easter Sunday)
  • 24 June (Midsummer Eve)
  • All Saint’s Day (Saturday between October 21 and November 6)
  • 06 December (Father’s Day)
  • 24 December (Christmas Eve)
  • 25 December (Christmas Day)
  • 26 December (Second Day of Christmas)

Vacation Allowance

Vacation allowance in Finland is accumulated at a rate of 2 days per leave-earning month for the first year worked, and 2.5 days per leave-earning month after. A leave-earning month is a month where the employee has worked at least 35 hours or 14 days. The leave-earning year when holidays are accrued runs from 01 April to 31 March. Earned holiday leave cannot be replaced by compensation unless the employment contract has been terminated. 

Sick Leave

While there is no official number of sick days, an employee is entitled to sick pay if they are covered by social security and can provide a medical certificate. Sickness allowance is paid by Kela, but only 9 working days after the sickness begins (excluding the day of onset); during this 10 day period, the employee’s wages are paid by the employer. Kela will pay sickness allowance for a maximum of one year (300 working days).

Maternity / Paternity leave

  • Maternity: 105 working days where salary is paid 100% by Kela. The mother can continue working during maternity leave, but not 2 weeks before the expected birth, or 2 weeks after.
  • Paternity: 54 working days. Only 18 can be taken at the same time as the mother.
  • Parental Leave: 158 working days after Maternity Leave ends. Can be taken by either the mother or the father, or divided between them, provided they do not overlap.

Termination & Severance

There is no statutory obligation to pay severance in Finland.

Notice Period

Terminated by Employer
Years of EmploymentNotice Period
< 114 Days
1 – 41 Month
4 – 82 Months
8 – 124 Months
12 +6 Months
Terminated by Employee
Years of EmploymentNotice Period
< 514 Days
5 +1 Month

Social Security

Employee social insurance contributions are deducted automatically from the wage, while employer contributions are paid by the employers themselves. There is no cap.

CategoryEmployer (%)Employee (%)
Pension (Employee aged 17-52, or 63+)18.7%7.15%
Pension (Employee aged 53-6217.2%8.65%
Health Insurance (Salary < 15,128/year)1.34%0.53%
Health Insurance (Salary > 15,128/year)1.34%1.71%
Unemployment (Up to total payroll 2,197,500/year)0.50%1.50%
Unemployment (For part of payroll exceeding 2,197,500/year)2.05%1.50%

There is also a worker’s compensation insurance, that is paid fully by the employer, but it varies greatly depending on the payroll and work risks; ranges from 0.5 – 5%.

Pension

Finnish pension is covered by social security contributions, and foreigners living in Finland accrue pension the same way as locals. An individual will receive their pension after retirement even if they relocate abroad

Taxation

The Finnish fiscal year runs from January 1 to December 31.

Tax Rates

The following progressive rates apply for 2022

Taxable Income (EUR)Rate (%)
0 – 19,2000%
19,201 – 28,7006%
28,701 – 47,30017,25%
47,301 – 82,90021,25%
82,901 +31,25%

Tax Returns

All taxpayers in Finland receive a pre-completed tax return form in March/April; it must be checked, corrected if necessary, and returned by the 18th May.

Double Taxation

Finland has tax treaties with multiple other countries, which can reduce payable tax on certain incomes. It is also possible to obtain tax relief in Finland to avoid double taxation on the same income.

Health Insurance

Foreigners living and working in Finland for over four months must register for the National Health Insurance (NHI) and get a Kela card, which will offer reimbursement in pharmacies and clinics.

Cost of Living

The cost of living in Finland is quite high compared to some other countries in Europe. The estimated monthly cost for a single person is around 2,200– 2,500 euros, with 1,300 – 1,600 going to rent, depending on the location.


How We Can Help

We provide a full set of services in Finland allowing corporate clients, recruitment agencies and professional contractors to operate in an optimal manner while ensuring that all local employment obligations are taken care of.

Access Financial offers the following solutions in Finland:

  • Self-Employed Solution
  • Limited Company Solution

If you would like to discuss how Access Financial can help in Finland, please contact us.

Disclaimer

WE HAVE PREPARED THIS AS A GUIDE ONLY; IT DOES NOT FORM PART OF AN OFFER. PLEASE REQUEST ILLUSTRATIONS BASED ON YOUR SPECIFIC CASE FROM ONE OF OUR SOLUTION MANAGERS.