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Hiring in Finland

To hire in Finland you either employ through your own Finnish company or use an Employer of Record that employs your people locally for you. With an Employer of Record you can hire in Finland without an entity: contracts, payroll, tax, TyEL pension and insurance follow Finnish rules from the first day. Contractors are a third option, but only for genuinely independent work.

  • Updated 10/30/2026
  • Based on official Finland sources

Key facts

Hiring in Finland at a glance

Facts last checked 10/30/2026

Currency
EUR
Employer contributions
19.32%
Pay frequency
Monthly
Notice period
Employer notice is 14 days for up to 1 year of service, rising to 6 months after 12 years. Employees give 14 days, or 1 month after 5 years.
Probation
Up to 6 months. Either side can end it without notice, but not on discriminatory grounds.
Holiday
30 days a year after the first full year (2.5 days per month worked), 24 in summer and 6 in winter
Parental leave
160 days of parental allowance for each parent, paid by Kela. Up to 63 days can be given to the other parent.
Collective agreements
Finland has no statutory minimum wage. Universally binding collective agreements set minimum pay, working hours, holiday bonus and other terms for whole sectors, and they apply to every employer in the sector, whether or not it belongs to an employers' association. Most employees are covered by one.
Work permits
EU/EEA and Swiss citizens can work in Finland without a permit and register their right of residence with Migri if they stay longer than three months. Everyone else needs a residence permit on the basis of work before starting. The residence permit for an employed person requires at least EUR 1,600 a month in 2026 and pay at the collective agreement level. Specialists earning at least EUR 3,937 a month can use the specialist permit.

Ways to hire

Ways to hire in Finland

Each route suits a different situation. None of them is a stopgap - many companies employ in Finland through an EOR for years.

  • Employer of Record

    When it fits
    You want to employ people in Finland on Finnish terms without registering a company here. It works for one hire or a whole team, for as long as you need.
    Time to hire
    Usually days once the terms are agreed.
    Cost
    A fixed monthly fee per employee, on top of salary and statutory employer costs.

  • Your own entity

    When it fits
    You plan a larger team in Finland, want your own local presence, or need a Finnish company to sign contracts and invoice customers.
    Time to hire
    Registering an Oy with the Finnish Patent and Registration Office took 8 days on average in 2024. The bank account, tax, pension and employer registrations add time before you can hire.
    Cost
    A private limited company (Oy) needs no minimum share capital, but there are accounting, payroll, insurance, audit where required and local administration costs.

  • Contractor

    When it fits
    The work is genuinely independent: the person runs their own business, sets their own hours and invoices for results.
    Time to hire
    Quick to start.
    Cost
    The agreed fee. The risk is misclassification: if the relationship works like employment, Finnish employee rights and employer contributions can apply.

How Fronted can help

Fronted can employ your people in Finland through our own Finnish entity, or set up your own Finnish company (Oy) and run its accounting and payroll when you want one. Either way, you get one dedicated contact, and so does every employee.

man looking at computer handling multiple tasks

Employer of Record in Finland

Hire in Finland without an entity. We employ your people and handle contracts, payroll and compliance.

Illustration of a man with suitcase walking to a building

Set up your entity in Finland

When you want your own company in Finland, we set it up and run it - including accounting and payroll.

man and woman shaking hands with a crest in between

Global contractor management

Hire and pay contractors compliantly anywhere in the world. We streamline onboarding, invoicing, and payments in one unified platform.

Employer costs

Employer costs in Finland

The 19.32% rate adds up the average employer share of the TyEL pension (17.10%), the health insurance contribution (1.91%) and unemployment insurance (0.31%) for 2026. The TyEL rate varies by employer and insurer, and unemployment insurance rises to 1.23% on payroll above EUR 2,509,500. Accident and group life insurance come on top, often below 1% together. Collective agreements usually add a holiday bonus of 50% of holiday pay.

Gross salary
4,000 EUR
Employer contributions (19.32%)
773 EUR
Total monthly employer cost
4,773 EUR

Employment contracts in Finland

An employment contract can be made in writing, orally or electronically, but if it lasts longer than a month the employer must give written information about the key terms: the parties, the workplace, the role, the start date, pay, working hours, holiday, notice periods and the collective agreement that applies. Contracts are permanent unless there is a justified reason for a fixed term.

Working hours

Regular working hours may not exceed 8 hours a day and 40 hours a week, and many collective agreements set less. Total working hours, overtime included, may not exceed 48 hours a week on average over four months. Daily overtime is paid at a 50% supplement for the first two hours and 100% after that. Employees are entitled to 11 hours of daily rest and 35 hours of weekly rest.

Holiday

Under the Annual Holidays Act employees earn 2 days of holiday for each full month in their first year and 2.5 days after that, which gives 30 days a year: 24 days of summer holiday and 6 days of winter holiday. Holiday pay is normal salary during the holiday. Most collective agreements add a holiday bonus of 50% of holiday pay.

Parental leave

Each parent can take 160 days of parental leave, paid by Kela as a parental allowance, and up to 63 of those days can be given to the other parent. A pregnancy allowance of 40 days comes before the birth. Employees have the right to be away for the whole period and to return to the same or an equivalent job, and many collective agreements require the employer to pay full salary for part of the leave.

Notice and termination

An employer needs a proper and weighty reason to dismiss an employee, either for personal reasons or for financial and production reasons, and must follow the process in the Employment Contracts Act. Employer notice is 14 days for up to 1 year of service, 1 month up to 4 years, 2 months up to 8 years, 4 months up to 12 years and 6 months after that. Employees give 14 days, or 1 month after 5 years.

Work permits

Citizens of the EU, the EEA and Switzerland can work in Finland without a permit and register their right of residence with Migri if they stay longer than three months. Everyone else needs a residence permit on the basis of work before they start. The residence permit for an employed person requires a gross salary of at least EUR 1,600 a month in 2026 and pay at the collective agreement level. Specialists earning at least EUR 3,937 a month can apply for the faster specialist permit.

Official sources

The official sources this guide is based on.

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