--- title: "Finland" id: "11694" type: "global-payroll" slug: "finland" published_at: "2025-08-02T06:26:58+00:00" modified_at: "2026-11-02T19:36:58+00:00" url: "https://topsourceworldwide.com/global-payroll/finland/" markdown_url: "https://topsourceworldwide.com/global-payroll/finland.md" taxonomy_continent: - "Europe" --- # Payroll Services in Finland Fully managed payroll in Finland: TyEL pension, tax card withholding, Incomes Register reports within five days and the right collective agreement, with a named specialist a phone call away. [Get in touch](https://topsourceworldwide.com/contact-us/) TopSource rated 5/5 by our customers - - - - - [Read reviews](#testimonials) ## What a payroll company in Finland handles for you Finnish payroll runs close to real time. Every pay run reaches the Incomes Register within five days, pay floors come from collective agreements rather than a statutory minimum wage, and 2026 brought new rules on fixed-term contracts, lay-offs and dismissal. ### TyEL pension insurance The average TyEL contribution is 24.4% of pay in 2026: about 17.1% from the employer and a flat 7.3% from the employee. The higher employee rate for ages 53 to 62 ended this year. ### Health and unemployment contributions Employers pay 1.91% in health insurance and 0.31% in unemployment insurance, or 1.23% on total payroll above €2,509,500. Employees pay 0.89% in unemployment insurance. ### Tax card withholding Income tax is withheld at the rate on each employee’s tax card, which already includes state, municipal and any church tax and the employee’s health contributions. ### Incomes Register reports in five days Pay data goes to the Incomes Register within five days of payday. The employer’s health contribution is reported by the 5th of the next month, and withholdings and contributions are paid by the 12th. ### Collective agreements, not a minimum wage Finland has no statutory minimum wage. A universally binding collective agreement sets pay and terms for a sector, even for employers outside the employers’ association. ## Our Partners Globally ## Calculate Your Employee Costs in Finland Enter a gross annual salary to see the employer’s cost in Finland for 2026: average TyEL pension of 17.1%, health insurance of 1.91%, unemployment insurance of 0.31%, group life and accident insurance, and a holiday bonus of about 5% of pay. ##### 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](#) ## Know your Finland hiring costs before you commit Tell us the role, the sector and the salary. We’ll send back the full employer cost and net pay within one business day. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) > “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 , ## Employer Costs in Finland Explained Statutory employer contributions in Finland come to about 20% of pay in 2026, most of it TyEL pension. The holiday bonus in most collective agreements adds about 5% more. #### Employer and employee contributions The average TyEL contribution is 24.4% in 2026. The employee pays a flat 7.3%, and the employer pays the rest, about 17.1% on average, depending on the insurer and the size of the payroll. Health insurance is 1.91% for the employer. Unemployment insurance is 0.31% on total payroll up to €2,509,500 and 1.23% above it, plus 0.89% from the employee. Group life insurance averages 0.06%. Accident insurance depends on the job’s risk, and about 0.7% is a useful planning figure. #### Tax cards, withholding and reporting The employer withholds tax at the rate on each tax card. The employee’s health contributions, 1.10% plus 0.88% on income of €17,255 or more, sit inside that rate. Pay data goes to the Incomes Register within five days of payday. The employer’s health contribution is reported by the 5th of the following month, and withholdings and contributions are paid by the 12th. Foreign key employees can apply for 25% withholding, down from 32% since 1 January 2026. #### Holiday, holiday bonus and sick pay Employees earn two days of annual holiday per month, or 2.5 days after a year of employment. Most collective agreements add a holiday bonus, usually 50% of holiday pay, or about 5% of annual pay. The employer pays sick pay for the first day and the next nine working days, in full once employment has lasted a month. Collective agreements often extend it. Occupational health care is mandatory for every employer. #### What a Finnish employee actually costs For an employee on €60,000 a year, the employer pays about €12,048 in contributions and about €3,000 in holiday bonus, for a total cost of about €75,048. In the Tax Administration’s Helsinki example, the employee pays €13,244.84 in tax and €4,914 in pension and unemployment contributions, and takes home €41,841.16 before the bonus. #### Employment law changes in 2026 Since 1 June 2026 an employer can sign a fixed-term contract of up to a year without a specific reason, if the same employee hasn’t worked for it in the past five years. Lay-off notice fell from 14 days to 7 unless a collective agreement says otherwise, and the duty to re-employ now applies only from 50 employees. Since 1 January a dismissal needs a proper reason, no longer a “proper and weighty” one. Statutory notice from the employer runs from 14 days to six months with length of service, and from the employee 14 days or one month. A pay transparency bill, HE 129/2026, is before Parliament. ## Finland payroll contributions and rates, 2026 | Item | Employer | Employee | Applies to | | --- | --- | --- | --- | | TyEL pension insurance | 17.1% on average | 7.3% | Pay, average total of 24.4% | | Health insurance | 1.91% | 1.10% + 0.88% | Pay; employee share inside the withholding rate | | Unemployment insurance | 0.31% or 1.23% | 0.89% | Employer’s 1.23% on payroll above €2,509,500 | | Group life insurance | 0.06% on average | None | Pay | | Accident insurance | About 0.7% | None | Pay, depends on the job’s risk | | Income tax | None | Tax card rate | Withheld from each salary | | Withholdings and contributions | By the 12th | | Of the following month | | Incomes Register report | Within 5 days | | Of payday | ### Tax rate on pay in Finland: Tax Administration examples for 2026 | Annual pay | Tax rate | | --- | --- | | €30,000 | 8.5% | | €40,000 | 14% | | €50,000 | 19% | | €60,000 | 22.5% | | €70,000 | 25% | ### Gross to net and employer cost in Finland, annual | Annual gross salary | Employee contributions | Income tax | Net pay | Employer contributions | Total employer cost | | --- | --- | --- | --- | --- | --- | | €40,000 | €3,276 | €5,511.99 | €31,212.01 | €8,032 | €50,032 | | €60,000 | €4,914 | €13,244.84 | €41,841.16 | €12,048 | €75,048 | | €70,000 | €5,733 | €17,415.60 | €46,851.40 | €14,056 | €87,556 | Tax figures are the Tax Administration’s 2026 examples: a Helsinki resident aged 17 to 64, a church member, with one income and no children. Employer contributions use the average rates above. Total employer cost includes a 5% holiday bonus, which isn’t in net pay and depends on the collective agreement. Rates and thresholds shown were verified on 2 November 2026 against the Finnish Tax Administration, Varma and Veritas tables for 2026, and the Employment Contracts Act as amended in June 2026. This page is general information, not tax or legal advice. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) ## How our Finland payroll service works 1. Map your setup We confirm your employer registration, your TyEL and accident insurance, and the collective agreement that sets pay, working hours and notice for each role. 2. Migrate or onboard New hires’ tax cards are collected, foreign employees’ residence permits are checked, and year-to-date pay, tax and holiday balances are carried across. 3. Run and review Each month you receive a payroll report for approval before anything is paid: gross to net per employee and every tax and contribution line, with variances explained. Nothing is paid until you approve it. 4. File and pay We report each pay run to the Incomes Register within five days, pay withholdings and contributions by the 12th, and handle holiday pay and holiday bonus on the agreement’s schedule. 5. Stay current Contribution rates change every January, and Finland reformed fixed-term contracts, lay-offs and dismissal rules in 2026. We apply each change as it takes effect and re-verify the figures on this page. ## Why Choose TopSource for Global Payroll in Finland TopSource for payroll, Employer of Record or any other of our services represents a simpler, more reliable and transparent option. If you would rather not employ staff in Finland directly, our [Employer of Record in Finland](https://topsourceworldwide.com/employer-of-record/finland/) can employ them on your behalf. We don’t hide fees or sneak price increases. We run Finnish payroll in-house and file under your own registration rather than a bureau’s, so the same team that pays your salaries answers your calls. You get a named account manager, one consolidated monthly invoice covering salaries, contributions and fees, and one live Portico view of Finland beside every other country we run for you, across the Nordics and beyond. Portico syncs with your time-tracking, leave and HR systems via API – set up by our onboarding team, not left to yours. GDPR, SOC 2 and ISO 27001 certified. [Global Payroll](https://topsourceworldwide.com/global-payroll/) [Get Started](https://topsourceworldwide.com/contact-us/) ## Other services Accelerating your growth in Finland and beyond #### TopSource goes far beyond payroll, acting as your end-to-end partner in global workforce management. From Employer of Record (EOR) services and seamless entity setup to localized accountancy and fractional HR support, we cover every aspect of international employment. ### Global Employer of Record (EOR) services With our Global EOR services, you can hire talent in any country without establishing a legal entity. We handle employment contracts, payroll, benefits, and compliance on your behalf, enabling fast, risk-free global expansion. ### Actionable HR Advisory On demand access to our fractional and regional HR professionals who understand local laws, cultures, and best practices. Bespoke talent intelligence including salary, business and talent market benchmarking. ### Global entity management Our global entity management team helps you establish and maintain your corporate entities worldwide. We ensure full compliance with local laws and regulations, streamline administrative processes, and minimize risk — so you can focus on growing your business. ### Accounting We offer comprehensive accounting solutions tailored to meet your international needs. From bookkeeping and financial reporting to tax filings and audits, our services help you maintain transparency, accuracy, and compliance in every jurisdiction. ## Meet our experts for Finland Whether you’re entering the market or scaling operations, our specialists provide the insight and guidance you need to succeed in one of the world’s most dynamic and regulated employment landscapes. With TopSource, you’re backed by real experts, every step of the way. [Our People](https://topsourceworldwide.com/our-people/) ## Beyond a payroll service **A globalization accelerator** A payroll platform for your employees is just the beginning. We are constantly evaluating your entire organisation to identify compliance issues and ways to accelerate your global growth. - [Payroll platform](#) - [Audit](#) - [Intelligence](#) - [Advisory](#) ##### Payroll platform ###### Global payroll simplified Your intuitive hub for paying global teams. Simple, powerful, and designed to scale with you — no complexity, just clarity. ##### Audit ###### Eliminate barriers to growth Avoid compliance issues across your global workforce and uncover opportunities to improve profitability. On a quarterly basis we’ll help you audit your global talent strategy to ensure it aligns with your business goals. ##### Intelligence ###### Build a data-driven talent strategy Grow confidently and profitably with access to the latest TopSource insights & data on hiring markets, salary benchmarking & benefits. ##### Advisory ###### Expert guidance that turns complexity into clarity. Whether you’re managing a global acquisition or entering a new market, you get clear guidance to navigate complex decisions, avoid delays, and accelerate your global expansion. ## Finland payroll FAQs ### What are employer payroll contributions in Finland in 2026? About 20% of pay: TyEL pension of 17.1% on average, health insurance of 1.91%, unemployment insurance of 0.31%, group life insurance of 0.06% and accident insurance of about 0.7%, which depends on the job’s risk. ### What do employees pay in social contributions in Finland? 7.3% TyEL pension and 0.89% unemployment insurance, withheld separately, plus health contributions of 1.10% and 0.88% that sit inside the tax card rate. The 0.88% applies from €17,255 a year. ### How does the tax card work in Finland? The Tax Administration issues each employee a tax card with a withholding rate and an income ceiling. The employer applies that rate to pay and reports the result to the Incomes Register within five days of payday. ### When are payroll taxes due in Finland? Pay data goes to the Incomes Register within five days of payday, the employer’s health contribution is reported by the 5th of the next month, and withholdings and contributions are paid to the Tax Administration by the 12th. ### How much does it cost to employ someone in Finland? An employee on €60,000 a year costs about €75,048 with average contributions and a 5% holiday bonus, and takes home about €41,841 in Helsinki. Tell us the role and salary and we’ll send the full cost within one business day. ### Is there a minimum wage in Finland? No. Finland has no statutory minimum wage. Universally binding collective agreements set pay for each sector, and they apply even to employers outside the signing association. ### Is the holiday bonus mandatory in Finland? Not by statute. The holiday bonus comes from collective agreements, and most set it at 50% of holiday pay, or about 5% of annual pay. Holiday pay itself is statutory. ### What changed in Finnish employment law in 2026? Since 1 June: fixed-term contracts of up to a year without a specific reason, 7 days’ lay-off notice and a re-employment duty only from 50 employees. Since 1 January: dismissal needs a proper reason, no longer “weighty”. ### What notice periods apply in Finland? From the employer: 14 days up to a year of service, one month up to four, two up to eight, four up to twelve and six beyond that. From the employee: 14 days up to five years, then one month. Collective agreements can differ. ### Can a foreign company run payroll in Finland without an entity? A foreign employer can pay staff in Finland by registering and reporting to the Incomes Register, with some rules depending on whether it has a fixed establishment. TopSource can run that payroll or employ your team through our Employer of Record service. [Couldn’t find what you were looking for?](/contact-us/) ## Looking at other markets too? We help organizations employ and pay teams in 164 countries. 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Dollar](https://topsourceworldwide.com/global-payroll/saipan/) [San Marino Capital: City of San Marino Currency: Euro](https://topsourceworldwide.com/global-payroll/san-marino/) [Saudi Arabia Capital: Riyadh Currency: Riyal](https://topsourceworldwide.com/global-payroll/saudi-arabia/) [Senegal Capital: Dakar Currency: West African CFA franc](https://topsourceworldwide.com/global-payroll/senegal/) [Serbia Capital: Belgrade Currency: Serbian dinar](https://topsourceworldwide.com/global-payroll/serbia/) [Seychelles Capital: Victoria Currency: Seychellois Rupee](https://topsourceworldwide.com/global-payroll/seychelles/) [Slovakia Capital: Bratislava Currency: Euro](https://topsourceworldwide.com/global-payroll/slovakia/) [Slovenia Capital: Ljubljana Currency: Euro](https://topsourceworldwide.com/global-payroll/slovenia/) [Solomon Island Capital: Honiara Currency: Solomon Islands Dollar](https://topsourceworldwide.com/global-payroll/solomon-island/) [South Korea Capital: Seoul Currency: Won](https://topsourceworldwide.com/global-payroll/south-korea/) [South Sudan Capital: Juba Currency: South Sudanese Pound](https://topsourceworldwide.com/global-payroll/south-sudan/) [Sri Lanka Capital: Colombo Currency: Sri Lankan Rupee](https://topsourceworldwide.com/global-payroll/sri-lanka/) [Sudan Capital: Khartoum Currency: Sudanese Pound](https://topsourceworldwide.com/global-payroll/sudan/) [Sweden Capital: Stockholm Currency: Swedish krona](https://topsourceworldwide.com/global-payroll/sweden/) [Taiwan Capital: Taipei Currency: Dollar](https://topsourceworldwide.com/global-payroll/taiwan/) [Thailand Capital: Bangkok Currency: Thai Baht](https://topsourceworldwide.com/global-payroll/thailand/) [Trinidad & Tobago Capital: Port of Spain Currency: Trinidad and Tobago dollar](https://topsourceworldwide.com/global-payroll/trinidad-tobago/) [Tunisia Capital: Tunis Currency: Tunisian Dinar](https://topsourceworldwide.com/global-payroll/tunisia/) [Uganda Capital: Kampala Currency: Ugandan Shilling](https://topsourceworldwide.com/global-payroll/uganda/) [US Virgin Island Capital: Charlotte Amalie Currency: Dollar](https://topsourceworldwide.com/global-payroll/us-virgin-island/) [Venezuela Capital: Caracas Currency: Venezuelan bolívar](https://topsourceworldwide.com/global-payroll/venezuela/) [Zambia Capital: Lusaka Currency: Zambian Kwacha](https://topsourceworldwide.com/global-payroll/zambia/) [Zimbabwe Capital: Harare Currency: Zimbabwe Gold (ZiG)](https://topsourceworldwide.com/global-payroll/zimbabwe/) Load more