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Finland: Pay and benefits

Original and updating author: Teea Kemppinen

Summary

  • The payment of remuneration to the employee by the employer in return for work performed is an essential element of the employment contract. (See General)
  • If the employee's pay is based on a period of a week or more, as in the case of employees whose pay is expressed as a monthly salary, payment must be made at least once a month. (See Payment of wages)
  • Employers must deduct from an employee's pay the tax, pension and social security contributions that the employee is obliged to pay, and pass these on to the relevant bodies. (See Deductions)   
  • Employers are prohibited from discriminating against employees in the area of remuneration on various grounds. (See Equal pay)
  • There is no statutory national minimum wage, and minimum wage rates are usually set by collective agreements, where applicable. (See Minimum wages
  • The main form of pension provision is a statutory, earnings-related occupational scheme, based on mandatory employer and employee contributions. (See Pensions)
  • Employers are obliged to deduct income taxes due from employees' pay and pass them on to the tax authorities. (See Income tax and social security)
  • Employees who are absent from work owing to sickness or injury are entitled by law to be paid by their employer for the first 10 days of absence (including the day that the employee fell ill or was injured). (See Pay for employees not at work)