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Vacations in Finland are scheduled during the period of May to the end of September, with a primary focus on enjoying a leisurely break during the summer season. During this time, it’s essential to allocate approximately 4 weeks for their summer vacation, following 1 week during winter. This ensures a well-rounded work-life balance throughout the year.
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Finland has a strong and growing education system, and its workforce is known for its high level of education and skills. Finnish universities consistently rank high among the top in the world, producing well-educated and qualified graduates.
The countries employees are also known for their strong work ethic, punctuality, and reliability. The work culture in Finland emphasizes efficiency and effectiveness. This is extremely beneficial for companies planning to hire in Finland.
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Finland does not have a legally mandated minimum wage. However, the majority of employees are protected by collective agreements that outline minimum pay rates.
Standard Working Hours
The working hours in Finland typically range from 37.5 to 40 hours per week. This can vary on position and collective bargaining agreements. The standard working week is Monday – Friday.
Working hours exceeding the standard weekly hours are considered overtime and are subject to regulations specified in the employment contract or collective agreements. Before commencing any overtime work, mutual agreement must be reached. Generally, the maximum limits for overtime are set at 138 hours over a 4 month period and 250 hours annually.
In Finland, employees are typically paid on a monthly basis, with the payroll frequency set for the last day of each month. It is a common practice in Finland to provide employees with a 13th-month salary, which is typically paid before their holiday period.
Paid time off
Employees are entitled to between 24 to 30 paid days off, depending on factors such as prior agreement and provisions made in the employment contract.
Employees with a service duration of one month or more are eligible for 9 paid sick leave days. Following this initial period, a medical certificate from a doctor is required, enabling the employee to claim sickness allowance from the state (Kansaneläkelaitos or Kela).
This allowance is calculated based on the employee’s earnings and covers weekdays and Saturdays, with a maximum coverage period of 300 days. For employees with less than a month of service, sick leave entitles them to receive 50% of their pay.
Expectant mothers in Finland have the right to 105 workdays of unpaid maternity leave, which can begin anywhere between 30 to 50 days before the expected delivery date.
To receive benefits during maternity leave, mothers can apply through Kela, the Finnish Social Insurance Institution. In cases where the employer chooses to provide full or partial salary during the maternity leave, Kela reimburses the allowance to the employer.
Fathers have the option to take up to 54 workdays of unpaid paternity leave, which can commence when the mother’s maternity leave begins. They can choose to take the leave continuously or in separate batches, as long as it doesn’t exceed the child’s second birthday. The benefit during paternity leave can be claimed through Kela, the Finnish Social Insurance Institution.
Termination of Employment
Employee contracts can be terminated if there is a valid reason, such as dishonesty, negligence, fraud, or other work-related misconduct. In addition, termination notice should be given in advance, but this is subject to mutual agreement between both parties involved. In Finland, there isn’t a legally mandated severance pay, though the possibility of severance can be established through the terms of the employment agreement.
The length of the notice periods varies depending on the duration of the employment has lasted. For employment up to 1 year, the notice period is 14 days. This increases to 1 month for employment lasting 1-4 years and 4 months for employment lasting 4-8 years. The notice period extends to a maximum of 6 months, if the employment exceeded 12 years.
Probations can last up to six months and can be extended in place of any sick leave taken during the probation period.
The visa rules for Finland depend on the traveler’s nationality and purpose of visit. Citizens of the European Union (EU), European Economic Area (EEA), and certain other countries generally do not require a visa for short stays.
Non-EU/EEA citizens often need a visa for short visits. Longer stays for purposes like work, study, or residence typically require a residence permit. Various categories are contingent upon job rank and status. Those categorized as highly skilled professionals possessing a job offer in Finland are required to submit an application for a specialist permit.
The standard rate of VAT in Finland is 24%.