In Finland, a comprehensive set of mandatory employee benefits contribute to a strong social safety net and employee well-being.

Income Security and Leave

Employers are required to arrange and pay for statutory earnings-related pension contributions (TyEL) for most employees aged 17-67 if their monthly earnings exceed a minimum threshold. This pension provides income replacement upon retirement, disability, or death.

All residents of Finland contribute to the national pension (Kela) system through taxation. This public pension offers a basic income floor upon retirement or disability.

Both employers and employees contribute to unemployment insurance funds. Unemployed individuals may be eligible for unemployment benefits for a maximum of 300 weekdays.

Paid Time Off

Employees accrue a minimum of 2.5 days of paid annual leave per month, translating to 30 days per year after a full year of employment. Collective bargaining agreements might offer more generous leave entitlements.

Employees are entitled to paid sick leave for a reasonable period, with the employer typically covering the first few days, and earnings-related sickness insurance covering a longer period after that. The details are outlined in the Sickness Insurance Act.

Finland offers generous parental leave policies. Maternity leave is typically 4.5 months, with paternity leave available for fathers or partners. Parental leave can be extended for an additional period with partial pay.

Health and Safety

Employers are legally obligated to provide occupational healthcare for all employees. This covers work-related health examinations, workplace safety assessments, and support for maintaining work capacity.

Employers must provide statutory accident insurance that covers work-related accidents and illnesses.

Beyond the mandatory benefits provided by Finnish law, employers can offer a variety of attractive perks and benefits to enhance their compensation package and attract top talent. Here's a breakdown of some commonly offered optional benefits:

Health and Wellness

• Voluntary health insurance: Employers might offer supplemental health insurance plans that go beyond basic coverage provided by the national system.
• Travel and group life insurance: These policies provide additional financial security for employees and their families.
• Gym memberships and wellness programs: Companies may subsidize gym memberships or offer on-site fitness facilities to promote employee well-being.

Financial and Work-Life Balance

• Profit sharing: Some companies offer bonuses or profit-sharing schemes that tie employee compensation to company performance.
• Voluntary pension plans: Employers might contribute to private pension plans alongside the statutory earnings-related pension.
• Meal benefit: This benefit allows employees to purchase meals at a subsidized rate through vouchers or prepaid cards.
• Flexible work hours: Many companies in Finland offer flexible work arrangements, allowing for better work-life balance.
• Extra vacation time: Employers can offer additional paid vacation days beyond the minimum mandated by law.

Additional Perks

• Staff discounts: Companies may offer employees discounts on their products or services.
• Company phone: Providing a work phone can be a perk, especially for roles requiring constant connectivity.
• Culture and sports vouchers: Employers can grant tax-exempt vouchers for up to €400 annually to be used for cultural or sporting activities.

In Finland, employees are covered by a comprehensive health insurance system that combines mandatory occupational healthcare with public health insurance.

Occupational Healthcare (Työterveyshuolto)

All employers in Finland, regardless of size, are legally obligated to provide occupational healthcare services for their employees. This applies to all employees, even if there's only one person on staff. Occupational healthcare focuses on preventing work-related illnesses and injuries. It can include services like health assessments, preventive vaccinations, ergonomic consultations, and rehabilitation programs. Employers are responsible for covering the entire cost of occupational healthcare services.

Public Health Insurance (Kela)

All Finnish residents, including employees, are automatically enrolled in the national public health insurance system administered by Kela (The Social Insurance Institution of Finland). Public health insurance covers medically necessary treatment within the public healthcare system, including doctor visits, hospital stays, and some medications. Patients are typically required to pay a small client fee for these services. Employees contribute a small percentage of their taxable income towards public health insurance. The exact amount depends on income level and may change annually.

Finland offers a comprehensive two-pillar retirement system that ensures financial stability for employees in their retirement years.

National Pension (Kansaneläke)

The National Pension, provided by The Finnish Centre for Pensions, is available to all Finnish residents who turn 18 and meet minimum residency requirements. This pension is funded by the Finnish government through taxation and provides a basic level of income security in retirement. The amount received depends on factors like residency duration and income level.

Earnings-related Pension (Työeläke)

The Earnings-related Pension is provided by mandatory occupational pension schemes offered by private insurance companies or employer-run pension funds. All employees aged 18 or older are eligible, with some exceptions such as short-term assignments. This pension is funded through contributions from both employers and employees, with contribution rates varying by employee age and employer size. It provides a higher level of income replacement than the national pension, with the amount received based on salary level and accrued pension points throughout your career.

Key Points

The retirement age in Finland is flexible, currently ranging from 63 to 68. You can choose to retire earlier, but it will affect the amount of your pension. Both the national pension and earnings-related pension are adjusted annually to keep pace with the cost of living. Some employees, like those in the public sector, might have additional pension schemes on top of these two pillars.