Employer of Record (EOR) in Finland
Employer of Record (EOR) in Finland allows companies to hire skilled professionals without establishing a legal entity. Finland has a workforce of around 2.7 million people, with strong expertise in technology, engineering, healthcare, and green industries. Businesses often face challenges understanding Finnish labor regulations, collective bargaining agreements, and social security contributions, which are highly structured. Using an EOR in Finland simplifies compliance with strict employment laws while ensuring quick hiring and onboarding. Global companies frequently use EOR services to access Finland’s highly educated workforce, benefit from its innovation-driven economy, and manage payroll, benefits, and tax obligations without administrative complexity.
About Finland
Finland, located in Northern Europe, is well known for its advanced education system, digital innovation, and high standard of living. With a population of approximately 5.6 million, Finland consistently ranks among the most competitive economies globally. The country places strong emphasis on research, development, and technology, particularly in sectors like telecommunications, clean energy, gaming, and manufacturing.
The capital city, Helsinki, is a hub for international business, startups, and IT companies, while other cities such as Espoo, Tampere, and Turku also contribute to the country’s thriving business environment. Finland’s membership in the European Union and its adoption of the euro make it strategically positioned for businesses looking to expand across Europe.
The Finnish workforce is highly skilled, multilingual, and technologically adaptable. Most Finns speak English fluently, reducing communication barriers for international companies. Strong labor protections, collective bargaining agreements, and a focus on work-life balance shape the country’s employment structure. While the regulatory framework is strict, it ensures fairness and stability in employment practices.
For companies planning expansion into Finland, using an Employer of Record can help manage compliance, payroll, and local hiring while offering quick access to the country’s highly productive workforce.
Employment Terms and Regulations
Types of Contracts:
Permanent, fixed-term, part-time, and temporary contracts. Collective bargaining plays a strong role.
Working Hours:
Standard workweek is 40 hours, though collective agreements may set shorter hours.
Minimum Wage:
No statutory minimum wage; wages are determined by sectoral collective agreements.
Probation Period:
Usually up to 6 months.
Taxation and Contributions
Employers contribute to pension insurance, unemployment insurance, health insurance, accident insurance, and social security. Total employer contributions typically range between 20%–22% of gross salary, depending on sector and insurance rates.
Types of Leave
Annual Leave:
Minimum 24 days per year, increasing with tenure.
Sick Leave:
Employer pays full salary for up to 9 working days; social security covers longer absences.
Parental Leave:
Around 320 days shared between parents.
Public Holidays:
12 official holidays per year.
Employee Benefits
- Occupational healthcare services.
- Pension and unemployment insurance.
- Meal vouchers and commuter benefits (in some companies).
- Training and career development opportunities.
Termination Process
- Notice periods range from 14 days to 6 months, depending on length of service.
- Termination must be based on valid grounds (economic or personal reasons).
- Collective agreements often specify additional rules.
Employer Taxes
Pension insurance: ~16% of salary.
Unemployment insurance: ~0.27–1.09% of salary.
Health insurance: ~1.5% of salary.
Accident insurance: ~0.7% of salary (varies by industry).
Average employer tax burden: 20%–22% of gross salary.
EMPLOYER TAXES
20%–22% (Estimated)
FAQ's
How STM Manages Employment in India
Establishing an entity in every hiring location can be cost-prohibitive. STM simplifies the process by employing and paying your Indian talent on your behalf. We handle the intricate HR procedures and employment contracts in compliance with local laws. You can conveniently approve invoices through our platform. By partnering with an Employer of Record (EOR), you can efficiently and compliantly hire top talent globally.
Payment Processes for Indian Employees
We streamline payroll management for your Indian workforce. Employee hours, leaves, holidays, bonuses, and commissions are meticulously calculated. STM invoices you around the 15th of each month in your preferred currency, including US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD). This ensures your Indian employees receive their salaries promptly in Indian Rupees (INR). Simplify further by consolidating your global team’s salaries into a single payment.
Full-time Employees vs. Global Contractors
Contractors engage with multiple companies and are self-employed, while full-time employees focus solely on their employer and receive additional benefits like health insurance, equity, and time off. While hiring international contractors can be cost-effective, it comes with misclassification risks. Partnering with an EOR for contractor onboarding and payments ensures compliant and timely compensation.
Reliable Employee Support
Our platform offers accessible support for employees and employers with inquiries about benefits, visas, and global employment in India. Utilize the chat function to connect with our expert team. Additionally, every STM client is assigned a dedicated account manager, serving as the primary contact for global HR assistance.
