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Overview of Finland

Finland is located in the North of Europe between Sweden and Russia and is part of Scandinavia. It is also known as the land of the thousand lakes. It holds the record for the most island: 179,584. It has a population of 5.5 million and it is the most scarcely populated country in the European Union. The capital is Helsinki. The official languages are Finnish and Swedish. and its currency is Euro. In Finland one enjoys a free education all the way through college.

When doing business with the Finns, be open and speak plainly. Finns consider their word their bond and verbal commitment is considered an agreement. Do not be taken aback by long silences that may happen during meetings – just wait and do not interrupt. Always be punctual to business meetings as this is much appreciated.

Currency of Finland

  • Euro

Health Insurance and the Social Security system of Finland

Finland offers universal healthcare to all its residents. It has an extensive healthcare system as well as private healthcare options. Having healthcare is mandatory in Finland. The national scheme is called sairausvakuutus and the Social Insurance Institution of Finland is Kela. Once registered, one receives a Kela card which one needs to take along when going to visit a Doctor or pharmacy. An out-of-pocket expense is charged a maximum of 3 times a year when going for primary healthcare. The fee is around 20€.

Employer cost of Finland

The cost for an employer to hire someone in Finland is a plus of 20.76% to the gross salary.

Salary and bonuses of Finland

Regular employees are paid once a month on the 25th.

Bonuses are not paid as a requirement but many employers pay a holiday bonus which equates to half a months salary.

Public Holidays in Finland

In Finland, there are 11 public holidays.

  • January 1st – New Years Day
  • January 6th – Ephiphany
  • Good Friday
  • Easter Sunday
  • Easter Monday
  • May 1st – Labour Day
  • 39 days after Easter – Assumption of Mary
  • 49 days after Easter – Pentecost Sunday
  • The Saturday during the period 20–26 June – Midsummer Day
  • The Saturday during the period 31 October–6 November – All Saints Day
  • December 6th – Independence Day
  • December 25th – Christmas
  • December 26th – 2nd Day of Christmas

Working Hours in Finland

The regular work week in Sweden is 40 hours. The regular work day is 8:00am until 5pm with an hour lunch between 11:00am and 2:00pm. If an employee works overtime, he must be compensated with an extra 50% pay in the first 2 hours of overtime and 100% extra pay for any additional hour. Overtime cannot exceed an average of 48 hours per week over a 4 month period.

Vacation in Finland

In Finland, one receives a minimum of 25 days of vacation a year.

Sick Leave in Finland

When one falls ill in Finland, one should get a doctors certificate for the period one is unable to work. For the first 10 days of illness, employers are required to pay the wages for this period. After this, Kela (Finnish Social Insurance Institution) will take over and pay sickness allowance. The maximum amount Kela will pay is for one year (300 working days).

Termination/Severance in Finland

When terminating an employee in Finland, one needs a proper and weighty reason to do so. An employee can be dismissed for neglect of duty but needs to have a hearing and be given a possibility of reforming before being dismissed.

The notice period in Finland is as follows:

  • 14 days if the employment is less than 1 year

  • 1 month if the employment period is between 1 and 4 years

  • 2 months if the employment has continued between 4 and 8 years

There is no statutory obligation to pay severance pay in Finland.