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.
TopSource rated 5/5 by our customers
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.
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 expertFinland
| British Pound | Finland | |
|---|---|---|
| Base Salary (per month) | ||
| Employer Contributions | ||
| Total Cost (Annual) | ||
| Total Cost (Monthly) |
“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.”
“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.”
“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.”
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.
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.
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.
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.
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.
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.
How our Finland payroll service works
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 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.
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.
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.
Beyond a payroll serviceA globalization accelerator
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
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.
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.
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.
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.
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.
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.
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.
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”.
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.
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.
Looking at other markets too?
We help organizations employ and pay teams in 164 countries.
