Rivermate | Finland landscape
Rivermate | Finland

Voordelen in Finland

499 EURper employee/maand

Explore mandatory and optional benefits for employees in Finland

Updated on April 25, 2025

Finland has a robust social security system that forms the foundation of employee benefits and entitlements. Employers play a significant role in contributing to this system, ensuring employees have access to essential services and financial support during various life events. Beyond the statutory requirements, Finnish employees often have high expectations regarding additional benefits, which are seen as crucial components of a competitive compensation package. Understanding both the mandatory obligations and the common supplementary offerings is key for companies operating or planning to hire in Finland.

Navigating the complexities of Finnish labor law and benefit practices requires careful attention to detail. Compliance with statutory requirements is non-negotiable, while offering attractive optional benefits is essential for talent acquisition and retention in a competitive market. The structure of benefit packages can vary, influenced by factors such as industry norms, company size, and the specific needs and expectations of the workforce.

Mandatory Benefits

Finnish law mandates several key benefits and contributions that employers must provide. These are designed to protect employees and ensure social welfare. Compliance with these requirements is strictly enforced.

  • Annual Leave: Employees are entitled to paid annual leave. The amount typically accrues based on the length of employment. For employment lasting less than a year, employees usually earn 2 days of leave per month. After one year of service, this increases to 2.5 days per month, resulting in a minimum of 30 days (five weeks) per year for those working a five-day week. The timing of leave is generally agreed upon between the employer and employee, though the employer has the final say within certain limits.
  • Public Holidays: Finland observes several public holidays, which are typically paid days off for employees. If an employee is required to work on a public holiday, they are usually entitled to increased compensation, often double pay.
  • Sick Leave: Employees are entitled to paid sick leave if they are unable to work due to illness or injury. The duration and amount of pay for sick leave are often determined by collective agreements, but statutory minimums apply. Typically, employers pay full salary for a certain period (e.g., 10 days), after which the employee may be eligible for sickness allowance from the Social Insurance Institution of Finland (Kela).
  • Parental Leave: Finland has comprehensive parental leave provisions, including maternity leave, paternity leave, and parental leave, which can be shared between parents. The system provides allowances from Kela, and many collective agreements or employer policies supplement these benefits, sometimes including paid leave periods beyond the Kela allowance.
  • Social Security Contributions: Employers are required to contribute to various social security schemes on behalf of their employees. These include:
    • Earnings-related pension insurance (TyEL)
    • Unemployment insurance
    • Employment accident and occupational disease insurance
    • Group life insurance
    • Health insurance (part of the overall social security contribution)

The rates for these contributions are set annually and are a significant cost for employers. Compliance involves accurate calculation and timely payment of these contributions to the relevant insurance institutions.

Common Optional Benefits

While not legally required, many Finnish employers offer supplementary benefits to attract and retain talent. These benefits are highly valued by employees and contribute to a competitive compensation package.

  • Supplementary Health Insurance: Although Finland has a public healthcare system, many employers provide private health insurance. This can offer faster access to specialist appointments, a wider choice of doctors or clinics, and coverage for treatments not fully covered by the public system. This is a highly sought-after benefit.
  • Lunch Vouchers or Subsidies: Providing lunch benefits, often through electronic vouchers or a subsidized canteen, is extremely common. This benefit is tax-advantaged up to a certain limit and is a standard expectation among employees.
  • Sports and Culture Benefits: Employers often provide a tax-free benefit allowance that employees can use for sports activities, cultural events, or other wellness-related services. This promotes employee well-being and is a popular perk.
  • Company Car or Transportation Benefits: Depending on the role, a company car might be provided, especially for positions requiring significant travel. Alternatively, employers might offer subsidies for public transportation.
  • Mobile Phone and Internet: Providing a company mobile phone and covering internet costs for work-related use is standard practice, often extending to personal use as a taxable benefit.
  • Supplementary Pension Schemes: While the mandatory TyEL pension is the primary system, some employers offer additional voluntary pension plans to supplement the statutory pension.
  • Training and Development: Investing in employee training and professional development is a common benefit that helps retain staff and improve skills.

Employee expectations for these benefits are high, particularly in competitive industries. A comprehensive package of optional benefits is often a deciding factor for candidates when choosing between job offers.

Health Insurance

Finland has a universal public healthcare system funded through taxes and social security contributions. All residents, including employees, are covered by this system. Employers contribute to the health insurance portion of social security.

  • Public Healthcare: Employees have access to public health services, including primary healthcare centers and hospitals. Access is generally based on need, and costs for visits and treatments are subsidized.
  • Occupational Healthcare: Employers are legally required to arrange and pay for occupational healthcare services for their employees. This includes preventive services aimed at maintaining working ability and health checks. It may also include general practitioner-level healthcare services, depending on the employer's arrangement.
  • Supplementary Private Insurance: As mentioned under optional benefits, many employers provide private health insurance. This does not replace the public or occupational healthcare but offers an additional layer of access and choice. The cost of this insurance varies based on the level of coverage and the age/health profile of the employee group.

Compliance for employers involves ensuring correct social security contributions are paid and that the mandatory occupational healthcare services are properly arranged and funded.

Retirement and Pension Plans

The Finnish pension system is primarily based on the mandatory earnings-related pension (TyEL).

  • Earnings-Related Pension (TyEL): Both employers and employees contribute to the TyEL system. The contributions are calculated as a percentage of the employee's salary. The employer pays the larger portion of the contribution. These contributions fund the employee's future pension based on their earnings throughout their career. Employers are responsible for calculating and paying their share and withholding and remitting the employee's share.
  • State Pension: In addition to TyEL, there is a residence-based state pension, which provides a minimum level of income for those with little or no earnings-related pension. Employers do not directly contribute to this; it's funded through general taxation.
  • Supplementary Pension Schemes: Some employers offer voluntary supplementary pension plans. These are less common than in some other countries but can be used as a tool for executive compensation or long-term retention. Contributions to these schemes are typically agreed upon between the employer and employee or set out in the employment contract or collective agreement.

Compliance with pension requirements involves correctly calculating and paying TyEL contributions to an authorized pension insurance company.

Typical Benefit Packages

Benefit packages in Finland can vary significantly depending on several factors.

  • Industry: Certain industries may have specific collective agreements that mandate benefits beyond the statutory minimums. For example, the technology sector might offer more extensive optional benefits like generous training budgets or stock options, while manufacturing might have different provisions related to shift work or specific types of insurance.
  • Company Size: Larger companies generally tend to offer more extensive and varied benefit packages compared to smaller companies. They often have more resources to invest in supplementary health insurance, broader wellness programs, and more structured training opportunities. Smaller companies might focus on the most valued benefits like lunch vouchers and basic occupational healthcare.
  • Employee Role and Seniority: Executive or senior-level positions often come with enhanced benefits, such as more comprehensive health insurance, larger company cars, or supplementary pension contributions.
  • Cost Considerations: The cost of benefits is a significant factor for employers. Mandatory social security contributions represent a substantial percentage of payroll. Optional benefits add further costs, which employers must balance against their budget and the need to remain competitive in the labor market. The total cost of an employee includes not just the gross salary but also all mandatory and optional benefit costs.

Competitive benefit packages are crucial for attracting skilled professionals. Employers often benchmark their offerings against industry standards and key competitors to ensure they meet or exceed employee expectations. Understanding these typical structures helps companies design benefit programs that are both compliant and attractive.

Martijn
Daan
Harvey

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