|VAT||24% standard rate.|
Employer of record Services
TopSource offers complete payroll, EOR and contractor management services for Finland. TopSource provides Employer of Record services to global companies establishing a presence in Finland that do not wish to be burdened with the complications of Finland employment regulations.
TopSource serves as an outsourced Global Employment Solutions provider. We provide comprehensive employment services such as payroll, payroll related compliances, leave and attendance administration, HR management, and assistance with employer compliances.
If you have an established presence in Finland, our payroll bureau services are available. But if you are seeking to avoid the complications of a subsidiary—or wish to establish a presence quickly an convert to a subsidiary later—our EOR service is ready to support you today.
Services we offer
|• Payroll bureau solutions for your Finland entity|
|• Employment solutions/leasing||• Providing documents associated with employment|
|• Employee on-boarding process and documentation||• Monthly salary calculation|
|• Salary disbursement to employee’s account||• Pay slip generation (If applicable)|
|• Employee statutory benefits administration and deduction|
|• Foreign exchange and money transfer services for payment of employees and 3rd parties|
Company formation in Finland
We can help with company registration, company incorporation along with all the necessary documentation in Finland. We can also assist foreign companies to smoothly setup a company anywhere in Finland.
- Minimum Wage
No official minimum wage.
Employer 0.86% – Health Insurance 17.75% – Pension Insurance (Average) 0.65% or 2.60% (0.65% is for salary up to 2,083.5 EUR – Unemployment Insurance 0.60% – Vacation Pay Employee 1.53% (for salary above 14,020 EUR) – Health Insurance 6.35% (unless employee is between 53-62, then is 7.85%) – Pension Insurance (Average) 1.90% – Unemployment Insurance 0.00% – Up to 17,200 6.00% – 17,200 – 25,700 17.25% – 25,700 – 42,400 21.25% – 42,400 – 74,200 31.25% – Over 74,200
Working HoursFull time employment is considered 40 hours weekly, and 8 hours daily. Overtime is paid at 150% for the first two hours, and 200% for the following hours.
Vacation Days/Sick daysEmployees accumulate 2.5 vacation days for every month employed, a maximum of 6 days of vacation can carry over from one year to the next.
After one month of employment, employees are entitled to up to 9 days of consecutive sick leave payment.
Maternity/Paternity LeaveMaternity leave: Expecting mothers are entitled to 105 days of maternity leave. 50 of these days can be taken before the baby is born.
Paternity Leave: Expecting fathers are entitled to 54 days of paternity leave.
Social SecurityThe average monthly contribution is 18% of monthly payroll. The minimum monthly earnings used to calculate contributions are €57.51. There are no maximum earnings used to calculate contributions.
PensionThe two available pension schemes in Finland are the national public pension plan and a compulsory occupational pension scheme.
In the national public plan, up to 20% of average wages in Finland are contributed. Employers contribute 17.75% of workers’ wages to the earnings related pension scheme.
In the compulsory occupational pension plan, Employees contribute 6.35% of their wages to the earning related pension scheme until 53, at which point contributions raise to 7.85%.
Termination/SeveranceUnless there is an incident of severe misconduct an employer must issue a written warning to the employee and given an opportunity to change their behavior before termination.
Once termination is final, employers must provide the following notice to employees:
14 days: 0-1 year employed
1 month: 1-4 years employed
2 months: 4-8 years employed
4 months: 8-12 years employed
6 months: over 12 years employed.
Severance payment isn’t regulated in Finland outside of state offices, unless employee is over 45 and re-employment is considered difficult, in which case employee is entitled to severance from a public fund typically equalling 1,500 EUR.