--- title: "Finland" id: "15162" type: "employer-of-record" slug: "finland" published_at: "2025-08-12T10:45:05+00:00" modified_at: "2026-09-24T13:47:49+00:00" url: "https://topsourceworldwide.com/employer-of-record/finland/" markdown_url: "https://topsourceworldwide.com/employer-of-record/finland.md" taxonomy_continent: - "Europe" --- # Employer of Record in Finland Employ talent in Finland without a local entity — TyEL pension, sector collective agreements (TES), the lomaraha holiday bonus and statutory occupational healthcare handled by local specialists. [Get Started](https://topsourceworldwide.com/contact-us/) ## Why hire in Finland through an EOR Finland runs on the Nordic model with its own twists: no statutory minimum wage (sector agreements set pay, and yleissitovuus makes them binding on all employers), the TyEL earnings-related pension, the mandatory lomaraha holiday bonus, and compulsory occupational healthcare. Through TopSource EOR, that entire framework is already running. ### No entity required Employ staff in Finland, one of 164 countries we cover, without registering a Finnish Oy, setting up local banking, or handling statutory filings. ### The right TES, applied Finland has no minimum wage — sector collective agreements (TES) set pay floors, and yleissitovuus makes them binding on all employers. We classify each role under the correct agreement. ### TyEL pension, administered The earnings-related pension (TyEL) averages ~17.1% employer contribution and runs through a private insurer. We hold the insurance relationship and remit contributions flawlessly. ### The lomaraha holiday bonus Most collective agreements grant a holiday bonus (lomaraha) equal to 50% of holiday pay — a distinctive Finnish cost. We calculate, accrue and disburse it per the applicable TES. ### Working in days, not months We register the employment before day one — your hire can be working in Finland in days, while an Oy setup would still be weeks away. ## Hire in Finland without setting up an entity Finland offers a world-class talent pool, but the Nordic labour model brings specific mandates. There is no statutory minimum wage — sector collective agreements (TES) set pay floors, working hours and notice, and the yleissitovuus (universal applicability) rule makes a representative agreement binding on every employer in the sector, even foreign companies without local membership. Employers also contribute to the earnings-related pension (TyEL), averaging around 17.1% of gross payroll, alongside statutory health, unemployment and accident insurance; most agreements require a lomaraha holiday bonus of 50% of holiday pay; and occupational healthcare is mandatory. An Employer of Record absorbs all of it: TopSource legally employs your team, enforces the correct TES, administers the TyEL pension, arranges occupational healthcare, and reports in real time to the Finnish Incomes Register (Tulorekisteri). [Talk to our Finland team](https://topsourceworldwide.com/contact-us/) ## Calculate Your Employee Costs in Finland Enter a gross salary to see the full monthly cost of a hire in Finland — TyEL pension, health insurance and the lomaraha holiday bonus included in your total spend per employee. ##### Employment Cost Calculator *Indicative figures only and not definitive legal advice. Local regulations change frequently. [Consult an expert](/contact-us/) ##### Finland Annually Monthly | | British Pound | Finland | | --- | --- | --- | | Base Salary (per month) | | | | Employer Contributions | | | | Total Cost (Annual) | | | | Total Cost (Monthly) | | | Employer of Record services in [Learn more](#) Payroll Outsourcing in [Learn more](#) ## How EOR in Finland works: the process through TopSource Step 1 ### Define the role, TES classification and structure We align on duties, salary and benefits, determine the binding sector agreement (TES), and confirm whether the hire is an EU national or needs a work permit. Step 2 ### Draft and issue a compliant contract Your hire receives a Finnish-law employment contract incorporating the mandatory TES conditions, wage structure, working time and holiday-bonus terms. Step 3 ### Sponsor the work permit, if needed For international talent requiring a residence/work permit, TopSource acts as the sponsoring employer and files with the Finnish Immigration Service (Migri). Step 4 ### Register insurance and run payroll We set up TyEL pension coverage and the statutory occupational-health contract, then calculate gross-to-net pay, accrue the lomaraha, and submit real-time data to the Incomes Register (Tulorekisteri). Step 5 ### Support the relationship day to day You and your employee both get a dedicated HR manager for annual leave, occupational health, benefits and labour-law questions. ## Know your Finland hiring costs before you commit Tell us the role and sector — we’ll send back the full Finnish employment cost, TyEL pension and lomaraha included, within one business day. [Get a Custom Employment Quote](https://topsourceworldwide.com/contact-us/) ## Employer Costs in Finland at a Glance ~17.1% Average employer TyEL pension contribution 50% Holiday bonus (lomaraha) as a share of holiday pay 24 days Statutory annual leave, rising to 30 after one year ## Employer Costs in Finland Explained Total mandatory employer contributions in Finland average roughly 20-22% on top of gross salary. The largest is the earnings-related TyEL pension (~17.1% for employers), plus statutory health insurance (1.91%), tiered unemployment insurance and occupational accident cover. On top, sector agreements (TES) mandate a lomaraha holiday bonus of 50% of holiday pay, adding roughly 5% in annual payroll overhead. #### The TyEL pension and statutory contribution stack The largest employer cost is the earnings-related pension (TyEL), averaging around 17.1% of gross salary and managed through a private pension insurer. On top sit statutory health insurance (1.91%), tiered unemployment insurance (a lower rate on the first tranche of payroll, higher above the threshold) and accident/occupational-disease insurance (typically 0.3-0.8% for office roles). Total mandatory contributions average 20-22% of gross — paid to separate carriers on separate schedules. #### Collective agreements (TES) and universal applicability (yleissitovuus) Finland has no statutory minimum wage. Sector collective agreements (TES) set minimum pay, overtime premiums, sick-pay continuation and more — and under yleissitovuus, a representative agreement is legally binding on all employers in the sector, even foreign businesses without local membership. Getting the right TES is foundational: the wrong one means the whole payroll calculation is off from the start. #### The lomaraha holiday bonus and annual leave Statutory annual leave is 24 working days (four weeks), rising to 30 days (five weeks) after one year, paid at normal salary. On top, almost all collective agreements grant a holiday bonus (lomaraha, or lomaltapaluuraha) equal to 50% of the employee’s holiday pay — a distinctive Finnish cost that, amortised annually, adds roughly 5% to total employment cost, and one foreign employers routinely overlook. #### Mandatory occupational healthcare and seasonality Under the Occupational Health Care Act, every employer must arrange and fund preventive occupational healthcare for all employees — a legal obligation, though Kela reimburses part of the cost. Most employers provide comprehensive coverage as it is culturally expected. Note the Finnish calendar too: Midsummer (Juhannus) and July slow business dramatically, so plan onboarding around the high-summer leave period. ## EOR or entity setup: which one fits your Finland plan? Registering a Finnish Oy grants full local presence but means managing TyEL pension provider relationships, sector TES compliance, local tax reporting and mandatory occupational-health contracts. An EOR is the swift, compliant path — hire Finnish talent in days while avoiding setup cost — and usually the right call until Finnish headcount and permanence justify running that stack yourself. ### Consider an EOR if you’re: 1. Hiring your first one to five people in Finland 2. Evaluating the Nordic market before committing capital to an entity 3. Avoiding the TES, TyEL and occupational-healthcare setup for a small team 4. Working to a hiring deadline measured in weeks, not months [Get a cost comparison](https://topsourceworldwide.com/contact-us/) ## Why TopSource for Employing in Finland TopSource for Employer of Record, global payroll or any other of our services represent a simpler, more reliable and transparent option. We don’t hide fees or sneak price increases, and we don’t lock you in for employees you don’t use. You get a dedicated point of contact, reachable by phone, for the questions Finland raises constantly — from which TES applies to how the lomaraha and TyEL pension are handled. We blend HR advisory with in-market expertise, and stay flexible around your business. [EOR Services](https://topsourceworldwide.com/employer-of-record/) [Finland Payroll](https://topsourceworldwide.com/global-payroll/finland/) > “Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.” Director of Research Operations, > “Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.” Chief Human Resources Officer, > “TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.” Senior Manager, Human Resources , ## More than an Employer of Record. Employer of Record services are only one way that we help you accelerate your global growth goals. From talent advisory to entity management, we give you the tools you need to research, enter and expand into your key markets. ##### Market Selection Advisory Compare available talent, compensation, additional costs and regulations across different countries [Read more](https://topsourceworldwide.com/hr-advisory/market-selection-advisory/) ##### Salary Benchmarking Identify and prioritize markets for growth based on talent, cost & regulations [Read more](https://topsourceworldwide.com/hr-advisory/salary-benchmarking/) ##### Global Skills Analysis Map skill availability by region to align talent strategies with business goals.. [Read more](https://topsourceworldwide.com/hr-advisory/global-skills-analysis/) ##### Talent Acquisition Find, hire & onboard the highly skilled team members you need in each locality. [Read more](https://topsourceworldwide.com/talent-acquisition/) ##### Talent Strategy Optimization Optimize your talent strategy to enable your organization to achieve it’s global ambitions. [Read more](https://topsourceworldwide.com/hr-advisory/talent-strategy-optimization/) ##### Global Benefits Review Benchmark your global benefits to boost employee retention. [Read more](https://topsourceworldwide.com/hr-advisory/global-benefits-review/) ## Frequently asked questions ### What does an employee in Finland actually cost? Total employer cost typically runs 25-30% above gross salary: roughly 20-22% mandatory contributions (TyEL pension ~17.1%, health insurance 1.91%, unemployment and accident insurance), plus the lomaraha holiday bonus (50% of holiday pay, about 5% annually) and occupational healthcare. We quote the exact all-in figure per hire before you commit. ### Is there a statutory minimum wage in Finland? No — Finland has no statutory national minimum wage. Binding pay floors and working conditions are set by sector collective agreements (TES), which apply universally across a sector under the yleissitovuus rule. Getting the right TES is essential, and we benchmark and apply the correct agreement for every hire. ### What is the lomaraha holiday bonus? Lomaraha is a holiday bonus, granted under almost all Finnish collective agreements, equal to 50% of the employee’s holiday pay — separate from annual leave pay itself. Amortised across the year it adds roughly 5% to total employment cost, and it is a distinctive Finnish obligation foreign employers often miss when budgeting. ### How does the TyEL pension work? TyEL is Finland’s earnings-related pension for private-sector employees, averaging around 17.1% employer contribution (the employee also contributes a flat 7.30% regardless of age). It is administered through a private pension insurance company, not the state. As the employer of record, we hold the TyEL relationship and manage contributions. ### Is occupational healthcare mandatory in Finland? Yes — under the Occupational Health Care Act, every employer must arrange and fund preventive occupational healthcare for all employees, though Kela reimburses part of the cost. Most Finnish employers provide comprehensive coverage as it is culturally expected. We arrange compliant coverage as part of the employment. ### Should we use an EOR or set up our own Finnish Oy? Use an EOR to hire quickly without local setup — ideal for teams of one to ten — with TES, TyEL and occupational healthcare handled. Establish an Oy once local headcount and permanence justify the overhead. We transfer the team across when the time comes. [Couldn’t find what you were looking for?](/contact-us/) ## Hire Anywhere with Our EOR Services We help you legally employ and pay talent across 164 countries—so you can scale faster. 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Manila Currency: Peso](https://topsourceworldwide.com/employer-of-record/philippines/) [Portugal Capital: Lisbon Currency: Euro](https://topsourceworldwide.com/employer-of-record/portugal/) [Puerto Rico Capital: San Juan Currency: Dollar](https://topsourceworldwide.com/employer-of-record/puerto-rico/) [Qatar Capital: Doha Currency: Riyal](https://topsourceworldwide.com/employer-of-record/qatar/) [Romania Capital: Bucharest Currency: Romanian Leu](https://topsourceworldwide.com/employer-of-record/romania/) [Rwanda Capital: Kigali Currency: Rwandan Franc](https://topsourceworldwide.com/employer-of-record/rwanda/) [Saint Kitts & Nevis Capital: Basseterre Currency: Dollar](https://topsourceworldwide.com/employer-of-record/saint-kitts-nevis/) [Saint Lucia Capital: Castries Currency: Dollar](https://topsourceworldwide.com/employer-of-record/saint-lucia/) [Saint Vincent & the Grenadines Capital: Kingstown Currency: Dollar](https://topsourceworldwide.com/employer-of-record/saint-vincent-the-grenadines/) [Saipan Capital: Capitol Hill Currency: US Dollar](https://topsourceworldwide.com/employer-of-record/saipan/) [San Marino Capital: City of San Marino Currency: Euro](https://topsourceworldwide.com/employer-of-record/san-marino/) [Saudi Arabia Capital: Riyadh Currency: Riyal](https://topsourceworldwide.com/employer-of-record/saudi-arabia/) [Senegal Capital: Dakar Currency: West African CFA Franc](https://topsourceworldwide.com/employer-of-record/senegal/) [Serbia Capital: Belgrade Currency: Serbian Dinar](https://topsourceworldwide.com/employer-of-record/serbia/) [Seychelles Capital: Victoria Currency: Seychellois Rupee](https://topsourceworldwide.com/employer-of-record/seychelles/) [Slovakia Capital: Bratislava Currency: Euro](https://topsourceworldwide.com/employer-of-record/slovakia/) [Slovenia Capital: Ljubljana Currency: Euro](https://topsourceworldwide.com/employer-of-record/slovenia/) [Solomon Island Capital: Honiara Currency: Solomon Islands Dollar](https://topsourceworldwide.com/employer-of-record/solomon-island/) [South Korea Capital: Seoul Currency: Won](https://topsourceworldwide.com/employer-of-record/south-korea/) [South Sudan Capital: Juba Currency: South Sudanese Pound](https://topsourceworldwide.com/employer-of-record/south-sudan/) [Sri Lanka Capital: Colombo Currency: Rupee](https://topsourceworldwide.com/employer-of-record/sri-lanka/) [St-Maarten Capital: Philipsburg Currency: Caribbean Guilder](https://topsourceworldwide.com/employer-of-record/st-maarten/) [Sudan Capital: Khartoum Currency: Sudanese Pound](https://topsourceworldwide.com/employer-of-record/sudan/) [Suriname Capital: Paramaribo Currency: Surinamese Dollar](https://topsourceworldwide.com/employer-of-record/suriname/) [Sweden Capital: Stockholm Currency: Swedish Krona](https://topsourceworldwide.com/employer-of-record/sweden/) [Taiwan Capital: Taipei Currency: Dollar](https://topsourceworldwide.com/employer-of-record/taiwan/) [Thailand Capital: Bangkok Currency: Thai Baht](https://topsourceworldwide.com/employer-of-record/thailand/) [Trinidad & Tobago Capital: Port of Spain Currency: Trinidad and Tobago Dollar](https://topsourceworldwide.com/employer-of-record/trinidad-tobago/) [Tunisia Capital: Tunis Currency: Tunisian Dinar](https://topsourceworldwide.com/employer-of-record/tunisia/) [Uganda Capital: Kampala Currency: Ugandan Shilling](https://topsourceworldwide.com/employer-of-record/uganda/) [United Kingdom Capital: London Currency: Pound Sterling](https://topsourceworldwide.com/employer-of-record/united-kingdom/) [US Virgin Island Capital: Charlotte Amalie Currency: United States Dollar](https://topsourceworldwide.com/employer-of-record/us-virgin-island/) [Venezuela Capital: Caracas Currency: Venezuelan Bolívar](https://topsourceworldwide.com/employer-of-record/venezuela/) [Zambia Capital: Lusaka Currency: Zambian Kwacha](https://topsourceworldwide.com/employer-of-record/zambia/) [Zimbabwe Capital: Harare Currency: Zimbabwe Gold (ZiG)](https://topsourceworldwide.com/employer-of-record/zimbabwe/) Load more