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Global Payroll Team
Written by Global Payroll Team
Last updated May 1, 2026
Expert Reviewed
Payroll in Finland
EOR in Finland
PEO in Finland

Finland map

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Employer of Record/PEO and Payroll Services in Finland

Finland remains one of the world’s most stable and transparent business environments. Its transparent government, independent judicial system, highly industrialized economy and innovation-led business ecosystem continue to make it attractive to foreign investment, especially in cleantech, health technology, digital services, advanced manufacturing and research-intensive sectors.

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Doing Business in Finland

Finland offers growth opportunities particularly for companies in bioeconomy, clean and smart technologies, health and wellbeing, ICT and digitalization as well as travel and tourism. A global leader in cleantech and innovation, Finland also remains a strong location for health R&D and technology-driven investment.

Entity Registration and Incorporation Requirements

Setting up a new business or expanding an existing one in Finland is straightforward. Choose how your company operates from a range of entity types which suit your individual circumstance.

Banking

Banking Hours: 9:15 am to 4:15 pm from Monday to Friday

Working Week

The standard working week is generally 40 hours, usually worked from Monday to Friday.

Labor Law

The main laws governing the employment relationship in Finland include the Employment Contracts Act, the Working Hours Act and the Annual Holidays Act. Finnish employment law is also shaped heavily by collective agreements, which often determine key employment terms such as minimum pay, overtime arrangements and holiday bonuses.

Main Industries

Electronics, machinery, vehicles and engineered metal products, forest industry, chemicals, technology, clean energy and business services

GDP Growth

1.6%

Dates & Numbers

dd/mm/yyyy

Official State Name

Republic of Finland Suomen Tasavalta

Population

5.65 million

Capital

Helsinki

Major Languages

Finnish, Swedish

Currency

Euro €

Internet Domain

.fi

International Dialing Code

+358

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Finland
Helsinki, FI
12:28 pm, May 13, 2026
14°C
clear sky
76 %
Wind Gust: 0 mph
Clouds: 0%
Sunrise: 4:46 am
Sunset: 9:46 pm

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Payroll in Finland

Mercans offers comprehensive and reliable payroll services in Finland, making us a trusted payroll provider in the country. Our Finland payroll services are designed to meet the unique needs of businesses operating in the Finnish market, including compliance with local laws and regulations. As one of the top payroll companies in Finland, our expert team provides end-to-end payroll management and assistance with administrative tasks, such as tax and social security contributions.

With our advanced payroll technology and self-service portal, employees can manage their HR tasks independently, reducing the need for HR assistance and streamlining the process. Trust Mercans as your preferred partner for payroll in Finland and globally.

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Payroll

Companies that operate a multi-country payroll must take note that there is no national statutory minimum pay in Finland. Minimum wages are usually regulated by industry-specific collective agreements. Discretionary bonus schemes are common, and an employee posted to Finland is entitled to the salary determined by a universally binding Finnish collective agreement for the sector where applicable.

It is acceptable to provide employees with online payslips

Payslip

Payroll reports must be kept for 10 years

Reports

4 to 5 weeks depending on accrual

Annual Leave

Employers are generally required to pay salary during sickness for the day of falling ill and the following 9 working days if the employment has lasted at least one month

Sick Leave

Pregnancy allowance is generally paid for 40 working days and parental allowance for 320 working days per child, shared equally between the parents unless days are transferred

Maternity & Paternity Leave

14 days notice if the employee is employed for at least one year

Employee Termination

This is usually paid before the employee takes their vacation if provided by the applicable collective agreement

13th month salary

There is no national statutory minimum wage, but employees are protected by collective agreements that specify minimum pay rates

Minimum Wage

Overtime pay is generally 150% of the regular salary rate for the first two hours and 200% for subsequent hours, unless otherwise agreed within legal limits

Overtime

There are no general statutory provisions for severance pay

Severance Pay

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Employer of Record (EOR) in Finland

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Mercans’ Employer of Record services in Finland offer companies a compliant and efficient way to expand their global presence without establishing a legal entity or subsidiary in the country.

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As a leading EOR provider in Finland, our expert team takes on the legal and financial responsibilities of employing staff in Finland, including managing payroll, benefits, and taxes, while ensuring compliance with local laws and regulations.

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With Mercans as your EOR in Finland, you can focus on your core business while we handle the administrative tasks and provide real-time support for your staff

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PEO Finland

Mercans’ Professional Employment Organization services in Finland offer a flexible and cost-effective solution for companies seeking to establish a local presence and manage their workforce without setting up a legal entity or subsidiary in Finland. Our PEO services in Finland provide a range of HR services, including payroll management, benefits administration, and compliance with local laws and regulations.

As a trusted PEO in Finland, we handle the administrative tasks, allowing you to focus on your core business while we provide real-time support to your staff. With Mercans’ PEO services in Finland, you can expand your global presence quickly and efficiently.

Partnering with our PEO in Finland presents the fastest and most efficient way to enter the Finland market.
Contact us to explore how PEO Finland solutions from Mercans can support your seamless expansion!

Benefits of Hiring an Employee through a PEO in Finland

Expanding into the Nordic region? Partnering with a PEO in Finland can help your business establish a compliant, agile, and cost-effective presence in the country without the burden of setting up a local entity. Here’s how a Finland PEO can support your global growth:

Quick Market Establishment

A PEO in Finland enables your company to hire local talent quickly, often within days, without registering a Finnish legal entity. This streamlined setup allows you to enter the market faster and begin operations with minimal delay.

Local Compliance Expertise

Finland has strict labor protections, collective agreements, and tax regulations. A Finland PEO understands these local nuances and ensures that your hiring, payroll, and employee benefits comply with Finnish employment law, significantly reducing compliance risks.

Reduced Administrative Burden

Managing employment functions across borders can be resource-intensive. A PEO Finland provider handles payroll, contracts, benefits, and local reporting on your behalf, allowing your internal teams to focus on strategic objectives.

Cost-Effective Hiring

Setting up a Finnish subsidiary comes with legal, accounting, and HR infrastructure costs. Using a PEO in Finland eliminates the need for these upfront investments while giving you full operational flexibility and access to local workers.

Risk Management

With employment laws and tax rules frequently updated, staying compliant is a challenge. A Finland PEO keeps your organization informed and protected against labor-related liabilities or legal missteps.

Access to Finnish Talent

PEOs have established local networks, giving your business immediate access to Finland’s skilled workforce. You can hire top professionals familiar with the Finnish business culture, language, and market expectations.

Scalable Growth

Whether you’re starting with one employee or planning to build a larger team, a PEO Finland solution can scale with your needs, making it easier to test the market and adjust as you grow.

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Tax and Social Security

Residents are taxed on their worldwide income at progressive rates, while non-resident individuals are generally taxed on Finnish-source income only. Finland’s social security system consists of services and cash benefits administered mainly through Kela, pension insurers, unemployment funds and municipal systems.

Tax

The employer is required to withhold tax on salaries paid to the employee. Finland continues to apply a 20% corporate income tax rate. The standard VAT rate is 25.5%, while personal income taxation remains progressive and the combined top marginal rate can exceed 50% depending on the municipality and other factors.

20%

Corporate Income Tax

57%+

Personal Income Tax

25.5%

Sales Tax

25.5%

VAT

Social Security

Overall, the Social Insurance Institution Kela covers persons who live permanently in Finland and, in some situations, those who work in Finland. Required employer contributions may include earnings-related pension insurance, unemployment insurance, accident insurance, group life insurance and the employer’s health insurance contribution. Employee contributions may include pension, unemployment insurance and health insurance contributions.

Varies

Social Security Rate

Varies

Social Security Rate for Employers

Varies

Social Security Rate for Employees

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Employment Law

Finnish law does not categorize workers in the same way as some other jurisdictions. The Employment Contracts Act defines an employment contract as an agreement to personally perform work for an employer, under the employer’s direction and supervision, in return for pay or remuneration. Independent contractors are not covered by mandatory statutory employment rights in the same way as employees.

Employment Agreement

Written employment contracts are not strictly required in Finland, but a written statement of key employment terms must be provided to the employee. It is, however, customary to have written employment contracts covering duties, duration, probation, salary and other core terms.

Working condition

Regular working hours must generally not exceed eight hours a day and 40 hours a week. Overtime work can only be performed on the employer’s initiative and with the employee’s consent. The maximum amount of work including overtime is generally an average of 48 hours a week during a four-month period.

Leaves

Employees typically accrue 2 or 2.5 weekdays of annual holiday for each full holiday credit month, depending on length of service. This usually corresponds to four or five weeks of annual leave. Public holidays are separate from annual leave.

Employment termination

Unless otherwise provided, parties to an employment agreement can agree on the notice period in the employment contract within the limits of law and collective agreements. If notice periods are not set out otherwise, statutory notice periods apply based on the employee’s length of service.

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14 days

Minimum notice period for terminating an employee

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11

Total number of public holidays

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40

Working hours per week

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No legal

Total number of days for Compassionate & Bereavement Leave

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Immigration

Permits for entrepreneurs and employees depend on whether the person is from another Nordic country, an EU country or comes from outside the EU.

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Residency permits

Citizens of Nordic countries may freely enter and reside in Finland as well as take up paid employment without a residence permit. EU citizens have the right to enter, reside, study and seek work for three months without a residence permit, and if they stay longer they must register their right of residence. Individuals from outside the EU generally require a residence permit for employment.

Work Permit validity

Usually up to 2 years for a first permit, depending on the permit type and employment duration

Required Documents

Valid work contract in Finland

A job offer or confirmed employment from a Finnish employer

Professional qualifications required for the role where applicable

Clear grounds for residence and no entry ban to the Schengen Area

Compliance with Finnish immigration requirements and public order rules

For specialist permits, the individual must qualify as a highly skilled worker

For regulated welfare and healthcare professions, the individual must be authorized to practice the profession

Compliant, reliable, error-free and touchless payroll in Finland

Build the best team and hire top talent compliantly in Finland. Get in touch with Finland payroll outsourcing & PEO specialists for a free consultation!

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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    FAQs

    What is an Employer of Record (EOR) in Finland and how does it support foreign companies?

    An Employer of Record in Finland legally employs staff on behalf of foreign businesses. It handles employment contracts, payroll, taxes, social contributions, and ensures compliance with Finnish labor laws, allowing companies to hire locally without establishing a legal entity.

    Why should businesses use an EOR instead of setting up a legal entity in Finland?

    Using an EOR offers quick and cost-effective market entry. It eliminates the need for local company registration, reduces administrative tasks, and ensures compliance with Finnish employment and tax regulations.

    How does payroll outsourcing in Finland ensure compliance with tax and labor laws?

    Payroll outsourcing ensures that salaries, taxes, and social contributions are processed according to Finnish legislation. It helps businesses avoid compliance risks and penalties while maintaining accurate and timely payroll operations.

    Can an Employer of Record in Finland hire employees and manage work permits for international companies?

    Yes, an EOR in Finland can hire employees on behalf of international companies and assist with obtaining work and residence permits. It manages HR, payroll, and compliance with Finnish labor and immigration laws.

    What are the main benefits of using EOR and payroll services in Finland for global expansion?

    EOR and payroll services in Finland enable faster hiring, full legal compliance, reduced administrative burden, and access to local expertise. They allow companies to expand efficiently while focusing on their core business activities.

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