Finland is a country of contrasts — modern cities and historic sites, endless summer days, and dark winter nights illuminated by the Northern Lights.
Beyond its natural beauty, Finland is an ideal choice for global companies seeking to hire employees with in-demand skills. The country's world-class education system produces a highly skilled workforce, and its strong emphasis on innovation makes it a hub for technology, design, and research.
Finland also prioritizes work-life balance, inclusivity, and ease of doing business. If you want to expand your international team, Finland offers a highly educated, tech-savvy workforce.
Key takeaways:
- Finland's strong education system and innovation-driven economy make it an attractive option for businesses hiring skilled remote workers.
- Labor market reforms focus on enhancing flexibility and tackling workforce shortages in critical industries.
- English is widely spoken in Finland, simplifying international teams' communication and collaboration.
Advantages of Hiring in Finland
Finland is an appealing option for companies seeking international talent for several reasons. It has a highly educated workforce, a strong culture of innovation, and a secure business environment.
About 70% of Finns speak English, making it easy for employees to integrate into global teams. The country also offers a high quality of life, a stable economy, and a strong commitment to gender equality and work-life balance.
Here are some quick facts about Finland:
- Languages: Finnish, Swedish
- Currency: Euro (EUR)
- Capital City: Helsinki
- Population: 5.62 million
- Cost of Living Rank: 26th
Creating New Opportunities Through Investment in Innovation
The Finnish government plans to invest EUR 4.3 billion in economic growth by 2030, focusing on research and development. Labor market reforms are also being worked on to increase flexibility and address workforce shortages in key industries. These efforts align with Finland's Recovery and Resilience Plan, which is designed to strengthen public finances and drive long-term productivity growth.
Technology — particularly IT outsourcing and business process outsourcing (BPO) — remains a major driver of Finland's economy, with the revenue expected to grow at an annual rate of 4.85% between 2025 and 2029.
International companies typically hire Finns for remote AI, cloud computing, and cybersecurity roles. Common remote job titles include:
- Software Engineer (Backend, Fullstack)
- Product Manager
- Administrative Assistant
- Cybersecurity Specialist
- Cloud Engineer
Employment Laws: Hiring Compliantly in Finland
Employment Contracts
Under Finnish employment law, contracts are either indefinite/permanent (toistaiseksi voimassa oleva työsopimus) or fixed-term (määräaikainen työsopimus). Permanent contracts offer long-term job security, while fixed-term contracts are for temporary roles and require a "justifiable" reason — such as temporary post (sijaisuus), project work, or peak demand/seasonal roles.
In addition, collective bargaining agreements, known as TES (työehtosopimus), set industry-specific employment terms. Almost every sector has its own agreement negotiated by employers and employee unions. TES agreements define a given industry's wages, working hours, and holidays. If a sector follows a collective agreement, it must be referenced in the employment contract.
Working Hours & Pay
In Finland, the standard workweek is 40 hours (eight hours per day) for full-time employees, and overtime pay is 150% of standard pay for the first two hours and 200% beyond that.
There's no national minimum wage, but collective agreements set industry-specific pay standards. A 13th-month salary isn't required but is often paid as a holiday bonus under collective agreements.
Probation Periods
Probationary periods can last up to six months and must be included in the employment contract. Either the employer or employee can terminate the contract during this time with a shorter notice period.
Employer Taxes
Employers in Finland must contribute a percentage of their employees' salaries to several mandatory social security programs, including:
- Employment pension insurance
- Health insurance
- Unemployment insurance
- Accident insurance
- Group life insurance
- Sickness insurance
Termination Process & Severance Pay
Employers need just cause to terminate an employee, such as financial or operational reasons. Under the Cooperation Act, companies must consult employees before large-scale layoffs.
Notice periods range from 14 days to six months, depending on tenure, but severance pay isn't mandatory unless required by a collective agreement or individual contract.
Paid Leave Laws in Finland
Vacation and Holiday
In Finland, the amount of annual leave is based on an employee's length of service. Employees earn 2.5 days of paid leave for each full month of employment. This works out to 30 days of time off per year. Employees with less than a year of service accrue two days of leave per month.
In addition, employees are entitled to several paid public holidays, including:
- New Year's Day
- Epiphany
- Midsummer Day
- Independence Day
- Christmas Day
Sick Leave
After working at a company for one month, employees are entitled to nine paid days of annual sick leave. Employees with less than one month of service receive 50% of their wages during sick leave.
Some employers offer additional pay under collective agreements. Employers can choose to pay all or part of an employee's salary during leave, with Social Security reimbursing the employer.
Parental Leave
In Finland, maternity leave typically starts 30 – 50 days before the due date. The parental allowance is paid for a maximum of 320 working days and is divided equally between the parents, i.e., they are both entitled to 160 working days.
Parents can receive part of their parental or pregnancy allowance simultaneously. Parental allowance must be used by the time the child turns two.
Why Digital Nomads Love Finland
Finland offers fast internet, a high quality of life, and stunning natural landscapes. Cities like Helsinki, Tampere, and Turku stand out for their coworking spaces, expat-friendly communities, and cultural amenities.
While the cost of living is higher than in some European countries, it's competitive within Western Europe. Moreover, Finland's safety, efficient public transport, and strong work-life balance make it an ideal destination for freelancers looking for both productivity and tranquility.
Finland doesn't have a dedicated digital nomad visa, but remote workers still have options. Non-EU citizens can enter Finland on a Schengen tourist visa, which allows stays of up to 90 days within a 180-day period.
While remote work isn't technically permitted under this visa, more extended stays are possible through other routes:
- Self-employment visa: Available for freelancers and entrepreneurs, the self-employment visa grants up to one year of residence and can be renewed.
- Startup visa: The startup visa is intended for founders launching internationally scalable businesses, grants up to two years of residency, and requires company registration and tax compliance in Finland.
How to Pay Remote Workers in Finland
Employers have several options for paying remote workers in Finland, each with pros and cons. Bank wire transfers are the most secure and widely used method, but they can come with higher fees and slower processing times.
Alternative payment methods, such as PayPal and Wise, offer flexibility but come with challenges, including fluctuating exchange rates.
To simplify payroll and ensure compliance with Finnish labor laws, companies can work with an Employer of Record (EOR), which manages payroll, taxes, and benefits for international employees — eliminating administrative headaches for your HR team.
Hire in Finland with RemoFirst
RemoFirst makes it easy to hire global talent in 185+ countries, including Finland.
We act as the official employer for your remote team, handling onboarding, global payroll, benefits, and legal compliance. That means you can hire international employees without the hassle or expense of setting up a local legal entity.
RemoFirst also ensures that independent contractors and employees are correctly classified, eliminating the risk of worker misclassification.
Book a demo today to see how we can help you expand your global team.
