Employer of Record & PEO in Finland

Hire & manage teams remotely in Finland without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Native Language

Finnish, Swedish


$296 billion

Payroll Frequency


Capital city


GDP per capita





Euro (EUR)


UTC +2

English Speaking



5.55 Million

Employment Cost


Cost of Living


How NNRoad Employment & PEO Services Work?

NNRoad provides professional employment organization (PEO) & employer of record (EOR) services for companies looking to hire and manage teams in Finland. Registering a legal entity in Finland as a means for employment is an outdated practice that takes both time (months) and money (thousands of USD). NNRoad’s employer of record and PEO services enables companies to hire and manage employees in Finland in full accordance with local labor laws in under a week.

Employer of Record in Finland

Employer of Record (EOR) services are for companies who do not have a legal entity in Finland, but who want to hire in Finland. Employment and full liability are outsourced to NNRoad.

➊ You interviews & select the candidates you want to hire in Finland.
➋ NNRoad arranges a local labor contract with your new employee.
➌ NNRoad arranges a service contract between your organization & NNRoad.
➍ NNRoad organizes, manages & processes  payroll in Finland in full compliance with local employment laws.
➎ You maintain a normal working relationship and manage your team in Finland while NNRoad manages payroll & HR liabilities.

Payroll & PEO in Finland

Professional Employment Organization (PEO) services are for companies who have a legal entity in Finland, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

➊ You interviews & select the candidates you want to hire in Finland.
➋ NNRoad organizes, manages and processes payroll for your local employees in full compliance with local employment laws.
➌ You maintain a normal working relationship and manage your team in Finland while NNRoad manages payroll & HR compliance.

Advantages of NNRoad's Finland Employment Services

  1. With EOR/PEO solutions you can manage client meetings, sales, quality control, marketing, R&D and customer support without a local company in Finland.
  2. Pay as you go
  3. ​​Dedicated account manager – One point of contact for multiple locations
  4. Employment & termination processing
  5. Complete payroll solution and statutory benefit according to local laws
  6. With EOR/PEO solutions you can hire staff while waiting for the registration of your company in Finland.
  7. NNRoad only works with professional locally licensed partners
  8. GDPR compliant
  9. NNRoad manages employee record timekeeping, bonus and allowance, expenses claims and personal leaves according to local law.
  10. NNRoad provides foreigner VISA application services, if needed

Employment Compliance in Finland

Taxes & Payroll in Finland

Employee Income Taxes:

Finland taxes residents on their worldwide income. Earned income received by residents is taxed at progressive tax rates for national tax purposes and at a flat tax rate for municipal (and church and social security) tax purposes. 

Tax Brackets

0%: Up to 19,200 EUR
6%: 19,200 to 28,700 EUR
17.25%: 28,700 to 47,300 EUR
21.25%: 47,300 to 82,900 EUR
31.25%: Over 82,900 EUR

Sample Calculation

Yearly income = 50,000 EUR
0% * 19,200 = 0
6% * 9,500 = 570
17.25% * 18,600 = 3,208.50
21.25% * 2,700 = 573.75
0+570+3208.50+573.75 = 4352.25

Yearly income tax = 4,352.25 EUR

Employer Costs in Finland

Employer Contributions:

Pension insurance (TyEL) 

17.40% (average rate) 

Health insurance 


Unemployment insurance 

0.50% if paid wages no more than €2,197,500 a year 

2.05% if paid wages go over €2,197,500 a year 

Occupational accident and disease insurance 

This varies by company and line of business 

Group life insurance 

This varies by company and line of business 

Employee Contributions:

Pension insurance (TyEL) 

7.15% (worker’s ages 17 to 52) 

8.65% (worker’s ages 17 to 52) 

7.15% (worker’s ages 63 to 67) 

Health insurance: 


Medical care coverage 

0.53% (for employees and self-employed persons) 

1.50% (for beneficiaries – pension and benefit income) 

Daily allowance 

1.18% (employees and self-employed persons insured under MYEL Act) 

1.32% (elf-employed persons insured under YEL Act. other self-employed persons) 

Unemployment insurance 


Working Hours and Overtime in Finland

Working Hours per Week

Regular working hours for employees covered under a general working time arrangement cannot exceed eight hours per day or 40 hours per week. Regular working hours for employees might also be adjusted and have more flexible hours. Flexible working hours allow employees to set their own start and end times for their workdays, within specific parameters. Flexible working hours must always be agreed upon in writing between the employer and the employee.

In general, maximum overtime limitations are 138 hours in four months and 250 hours in a year. Overtime hours are paid at 150.00% of regular salary for the first two hours and 200.00% for each additional hour. On a weekend/rest day/Sunday, any overtime work is compensated at 200% of the regular wage rate of pay. 

Mandatory Contributions in Finland

Pension insurance (TyEL) 

Pension insurance provides a secure income against various long-term risks. The national pension covers all people residing in Finland if they meet the minimum requirements relating to time of residence. Earnings-related pensions cover people with earned income. 

Pension accrues for work carried out between the ages of 17 and 67. For the self-employed, pension benefits accrue as of age 18. The pension is calculated based on the person’s earnings for each year and an age-specific accrual rate. Pension also accrues based on certain unsalaried periods, such as periods of unemployment or study. 

Health insurance 

Employers must pay health insurance contributions for 16 to 67 year old employees who are covered by the Finnish social insurance system in accordance with the Health Insurance Act. Even if no tax can be withheld, the employer’s health insurance payment must be paid. This could be the case if wages are paid in the form of fringe benefits rather than cash, or if the employee’s tax card indicates that no tax should be withheld. 

Unemployment insurance 

If the total amount of salaries paid to employees throughout the calendar year exceeds €1,300, the employer must pay an unemployment insurance contribution. Employees aged 17 to 64 pay an unemployment insurance contribution. Unemployment insurance contributions must also be paid by employees.  

Occupational accident and disease insurance 

If the entire amount of salaries paid in a calendar year exceeds €1,300, employers must provide insurance coverage against occupational accidents and diseases to their employees. As soon as the job starts, the insurance must be in place. The contribution to accident insurance varies by line of business and corporation. 

Group life insurance 

If your collective labor agreement requires it, you may also be required to purchase group insurance coverage for your employees. 

Termination Laws and Severance Pay in Finland

An employment relationship may end due to the expiration of its defined term, dismissal, cancellation, or being declared canceled under certain circumstances. When legal grounds for termination exist, both the employer and the employee may terminate the employment relationship. 

An employment contract that is indefinitely valid can be ended by giving notice to terminate. The employee is not needed to provide any specific reasons for termination, but the notice period must be followed. The employer, on the other hand, is prohibited from terminating an employment relationship without good reason. 

The following are acceptable as such a reason: 

  • a serious breach or neglect of obligations having essential impact on the employment relationship; 
  • essential changes in the conditions necessary for working related to the employee’s person as render the employee no longer able to cope with his/her work duties; 
  • a significant and permanent reduction in the work that the employer may offer, unless the employee can be assigned to or retrained for other duties. 

The period of notice depends on the length of the employment and it is different for employer and employee. 

When the contract is terminated by the employer: 

Length of employment 

Period of notice 

Up to 1 year 

14 days 

1 to 4 years 

1 month 

4 to 8 years 

2 months 

8 to 12 years 

4 months 

12+ years 

6 months 

When the contract is terminated by the employee: 

Length of employment 

Period of notice 

Up to 5 years 

14 days 

5+ years 

1 month 

Public Holidays in Finland

  • New Year’s Day – January 1
  • Epiphany – January 6
  • Good Friday – April 15
  • Second Easter Day – April 18
  • Vappu – May 1
  • Ascension Day – May 26
  • Midsummer – June 24-25
  • All Saint’s Day – November 5
  • Independence Day – December 6
  • Christmas – December 24-25-26

Paid Leave in Finland

Vacation is normally taken between May 2 and September 30. Annual leave is calculated from April 1 to March 31. Employees are entitled to two vacation days per month (or 2.5 days per month) for up to one year of continuous employment; beyond that, they are entitled to four weeks’ leave per year. The yearly leave entitlement increases to three days per month after 15 years of employment. Holiday pay is usually equal to the regular wage rate of pay, calculated using the 14-day or 35-hour rule. 

Employment Contract in Finland

Employment Contract

A contract for work might be oral, written, or electronic. 

Unless it was formed for a specific fixed duration for a good cause, an employment contract is valid indefinitely. Contracts created on the employer’s initiative for a defined term with no justification shall be considered valid indefinitely. 

When the volume or total duration of fixed-term contracts, or the totality of such contracts, suggests a permanent need for labor, it is unlawful to utilize consecutive fixed-term contracts. 

The minimum information that an employment contract should have is: 

  • the domicile or business location of the employer and the employee;  
  • the date of commencement of the work;  
  • the date or estimated date of termination of a fixed-term contract and the justification for specifying a fixed term, or notification that the contract is a fixed-term employment contract with a long-term unemployed person;  
  • the trial period;  
  • the place where the work is to be performed or, if the employee has no primary fixed workplace, an explanation of the principles according to which the employee will work in various work locations;  
  • the employee’s principal duties;  
  • the collective agreement applicable to the work;  
  • the grounds for the determination of pay and other remuneration, and the pay period; 
  • the working hours to be observed; for variable working hours agreed at the employer’s initiative, documentation must also be submitted indicating the circumstances in which and the extent to which the employer will have a need for labour;  
  • the manner of determining annual holiday;  
  • the period of notice or the grounds for determining it;  
  • in the case of work performed abroad for a minimum period of one month, the duration of the work, the currency in which the monetary pay is to be paid, the monetary remunerations and fringe benefits applicable abroad, and the terms for the repatriation of the employee. 

Probation Period

Starting from the beginning of work, the employer and the employee may agree on a probation period of up to six months. In a fixed-term work relationship, the trial period, including any extensions, may not exceed half of the employment contract’s duration, and in any case, may not exceed six months. 

Types of Leaves in Finland

Sick Leave

If the employment relationship has continued for more than one month, the employee will receive a full salary for ten days. If the employee is still sick after ten days, he/she can apply for sick allowance (sairauspäiväraha) from Kela, if the employee is covered by social security. If the employment relationship has lasted for a period shorter than one month, half of the wages will be paid for the same period. 

Maternity and Paternity Leave

Female employees who are expecting a child are entitled to 105 days of maternity leave (Saturday counts as a workday), which can begin 30 to 50 days before the due date. Maternity leave in Finland is referred to as family leave and incorporates maternity leave, paternity leave, parental leave, and childcare leave.  Generally, Family leave is unpaid, but this is stipulated within the employment contract/collective agreement. Paternity leave in Finland can last up to 54 days. Fathers can choose to stay at home with their children for up to 18 days at a time, then select when to take the remaining 36 days. After maternity and parental leave, fathers can use their paternity leave. Parental leave is 158 days. 

Immigration Laws in Finland

Citizens of countries outside of the European Union (EU), Norway, Switzerland, Iceland, and Liechtenstein will need to apply for a residence permit before working in Finland. 

There are three categories of visa that allow foreigners to work in the country:

  • Business visa – With this visa, employees can stay in Finland for up to 90 days but they are actually not allowed to work. They can only attend conferences and seminars.
  • Residence permit for self-employment – This permit may apply to some individuals within your company, including private entrepreneurs, partners, and members of a cooperative.
  • Residence permit for an employed person – This visa is the most common type, and most companies will need to be familiar with it for expanding operations in Finland.
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