How to hire remote employees in

Finland

Finland is home to some great remote talent. Want to know how you can hire that talent, legally, without wading into months of paperwork and thousands of dollars in fees? In the next few minutes, we’ll teach you.

Country snapshot

CURRENCY
Euro (EUR)
EMPLOYER TAXES
Up to 27.22%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Finnish & Swedish

What to know before you hire in 

Finland

Hiring in Finland? That’s excellent. There are two options: You can hire your talent as employees, or you can hire them as contractors. Because of Finland’s labor law structure, there are benefits and disadvantages to each approach.

If you want to successfully hire in 

Finland

, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 

Finland

. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 

Finland

 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 

Finland

Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 

Finland

.

It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 

Finland

 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

It’s less risky than hiring employees

Hiring employees is a bigger commitment, and generally puts you at a bigger risk for legal fees. When you hire contractors overseas, your biggest risk is misclassification—but even then, misclassification penalties are often minimal and just require you to pay off any compensation that the person would have been owed as an employee.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 

Finland

?

If you’re hiring contractors in 

Finland

, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 

Finland

Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 

Finland

If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Finland than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Finland.

Taxes in 

Finland

Employer tax

Employer Contributions

  • Up to 27.22%

Individual tax

Leave

Paid Time Off (PTO)

Annual leave is calculated from the period of April 1st through March 31st of the following year. Vacation is typically taken between May 2 -September 30 (4 weeks in the summer and 1 week in the winter).

Employees earn 2 vacation days per month or 2.5 days per month for continuous employment of over a year. Employees who have at least 15 years of service receive 3 vacation days per month.

Public Holidays

There are 10 public holidays.

Sick Days

Employees who have been employed for at least a month receive full sick pay for 9 working days. After 9 days, the employee must provide a medical certificate from a doctor.

Maternity Leave

Pregnant employees are allowed to choose when maternity leave begins with a maximum of 50 days before the expected due date. Once maternity leave begins, the employee receives benefits for 105 working days (Monday-Saturday, excluding holidays).

The employee must notify the employer and apply for maternity pay at least 2 months before starting maternity leave.

Paternity Leave

Fathers are given 54 days of paternity leave, with a maximum of 18 days to be used at the same time as the mother. The remaining days are to be taken in more than two periods.

Parental Leave

Both parents are allowed to take parental leave with benefits up to 158 days and ends when the child is approximately 9 months old. Parents are to agree when each takes the leave since it cannot be taken by both simultaneously.

Other Leave

None.

Marriage Leave

None.

Bereavement Leave

None.

Termination

Termination Process

An employer must provide valid reasoning for the termination of an employee. If an employee has performed poorly, the employer must first receive a warning and an opportunity to improve before being terminated.

An employee must provide written notice to the employer and honor the notice period before ending work.

Fixed-term employment cannot be terminated.

Notice Period

Notice period when the employer initiates the termination:

  • Up to one year employment – 14 days’ notice
  • One to four years of employment – one months’ notice
  • Four to eight years of employment – two months’ notice
  • Eight to 12 years of employment – four months’ notice
  • Over 12 years of employment – six months’ notice

Notice period when employee initiates the termination:

  • One to 5 years of employment – 14 days’ notice
  • More than 5 years of employment – 1-month notice

Severance Pay

There is no statutory severance pay unless the employee’s termination is unjustified, or the employer has decided voluntarily to provide it.

Probation Period

6 months.

Employee requirements in 

Finland

Working Hours

A full-time workweek is 40 hours, or 8 hours per day.

Overtime

Overtime work requires the employee’s consent for each overtime period, and to be considered overtime, must be under the employer’s initiative and approval. Overtime hours cannot exceed 138 hours over a 4-month period and 250 hours annually. Additional 80 hours of overtime may be agreed upon if it is necessary. 

Overtime increases pay to the rate of  150% of the regular pay for the first two hours and 200% for the following hours. Weekly overtime is paid at the rate of 150% of the regular pay. Any work performed on Sunday is compensated at 200%.  

Overtime pay can differ depending on collective agreements.

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