Finland: Operating a Business

Setting Up a Company

Business Setup Procedures

Consult Doing Business Website, to know about procedures to start a Business in Finland.
Trade Register

Working Conditions

Legal Weekly Duration

Normal working hours may not exceed eight hours per day and 40 hours per week.

Retirement Age

Employees can retire with a pension between the ages of 63 and 68.

Working Contracts

Contracts can be either permanent contracts that remain valid for the time being or for a fixed term (specified in the contract). Permanent contracts (including permanent part-time contracts) represent 86% of the jobs; the representation of fixed term contracts (including part-time fixed term contracts) is 13,6%. The number of people working under fixed term contracts is growing rapidly.

Cost of Labor

Minimum Wage

Minimum wages are based on collective agreements; there is no standard minimum wage in Finland. An employer, as a member of the employer organisation which has concluded a collective agreement applicable in the sector, follows the collective agreement. An employer, as a non-member of the employer organisation, is also required to follow the generally binding collective agreement applicable in the sector.

Average Wage

The average wage per hour is 13.80 EUR.

Social contributions

Social Security Contributions Paid By Employers: A private employer’s social security contribution varies being 2,951%, 5,151% or 6,051%. The health insurance contribution of a private employer is 2.05% of salaries and the old-age pension contribution is 0.901%, 3.101% or 4.001% depending on the payment class.
Social Security Contributions Paid By Employees: - Health insurance contribution: medical treatment contribution 1.28% and daily allowance contribution 0.75;
- Unemployment insurance contribution: 0.58%;
- Pension insurance contribution: 4.3% for those aged under 53 years and 5.4% for those aged 53 years or more.

Social Partners

Social Dialogue and Involvement of Social Partners

Approximately 80% of Finns are members of a trade union. The International labor Organisation (ILO) recently ranked Finnish unions as amongst the most effective in the world. Finnish unions are occupation-based. There are about 70 trade unions in Finland and they organize employees in all types of work. These unions are affiliated to one of Finland’s three labor confederations, SAK, STTK and AKAVA.

Unions

The Central Organization of Finnish Trade Unions (SAK)
Confederation of Unions for Professional and Managerial Staff in Finland (AKAVA)
The Finnish Confederation of Salaried Employees (STTK)

Unionization Rate

The level of Finnish employees’unionisation is among the highest in the industrialized world; 75% of employees belong to a trade union.

Labor Regulation Bodies

Ministry of Employment and the Economy
The Confederation of Finnish Industries
The Central Organisation of Finnish Trade Unions (SAK)
International labor Organization

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