Finland economy will recover quickly in 2021 and 2022
According to Crédit Agricole Group, Finland is a model example for its economic performance, competitiveness and innovative success. The effects of the COVID-19 crisis hit the Finland economy, with an estimated GDP contraction of 2.9% in 2020 (IMF, though the Finnish Ministry of Finance’s estimate is at 3.3%), mostly due to a sharp contraction in private consumption. Nevertheless, Finland performed better than most other EU countries, and is expected to start growing again at a rate of 2.5% in 2022, as consumers increase spending and companies start again to invest, subject to the post-pandemic global economic recovery. The government has provided substantial fiscal support in 2020 to businesses and households. Finland was ranking #20 in the World Bank’s 2019 Ease of Doing Business index (Sources: Nordea, World Bank, OECD, Crédit Agricole Group).
A trusted professional employment organization with in-depth knowledge of the Finnish market, XML International provides you with end-to-end personalised solutions to recruit and manage remote team members for your activities in Helsinki or any other city in Finland, regardless of the size of your organisation or your industry.
Employees will be employed pursuant to local labour laws, and all required social security and taxation will be paid to the local Authorities.
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There is no universal minimum wage in Finland. In most branches the collective agreement determines the pay and other employment terms.
Working hours in FInland are 8 hours a day, and 40 hours a week.
The accrual of annual leave is calculated on the basis of the holiday credit year which is from 1st April to 31st March. For an employment that has lasted more than 1 year the employee is entitled to two week days of holiday for each full holiday credit month.
By law, sick pay is paid for the day when the employee fell ill if it would have been a working day for the employee and for each working day included in the following nine weekdays. If the employment relationship has lasted for a minimum of one month, the employee is entitled to full pay as sick pay. In employment relationships that have lasted less than one month, the employee is entitled to 50% of his/her pay as sick pay.
The duration of maternity leave in Finland is 105 days, during which the mother receives maternity benefits.
Paternity leave duration is a maximum of 54 working days in total. After the child is born, the father can take off 1–18 working days during the period for which a maternity or parental allowance is paid in no more than four separate periods.
The remaining days for which paternity allowance is payable can be taken after the parental allowance period ends in no more than two periods. In addition, the parents can take either part-time or full time parental leave for no more than 158 working days in total.
The period of notice depends on the uninterrupted duration of the employment relationship. Up to:
1 year: 14 days
1–4 years: 1 month
4–8 years: 2 months
8–12 years: 4 months
More than 12 years: 6 month
The employer and the employee may, in an employment contract that is valid until further notice, agree on a probation period of a maximum of six months starting from the beginning of the work. If the employee has been absent during the probation period due to incapacity for work or family leave, the employer is entitled to extend the probation period by one month for every 30 calendar days included in the periods of incapacity for work or family leave.
The standard VAT rate is 24%.
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XML International, one of the best workforce solutions and employer of record services providers for Finland, supports the set-up and the management of your international workforce for all your activities in Finland. Our invaluable input consists of streamlining and handling for you the complete employment lifecycle of your teams. We give you all the keys to handle you staff in Helsinki or any city in Finland. XML’s knowledge of Finnish labour laws, tax and social security system, and employment regulations allows you to tackle the challenges of local compliance in Finland, navigate all the local complexities and avoid pitfalls.
Among our top priorities, compliance with Finnish employment regulations and labour laws is number one. In addition to talent acquisition, recruitment services, and workforce management, we also ensure that our clients’ workforce management in Finland is aligned with Finnish tax and social security rules and the latest immigration processes, including visas and work permits.
Here is the list of our core services supporting your activities in Finland.
Take advantage of the targeted outsourcing solutions proposed by XML International for your expansion into Finland or for your employees already based there. We offer a comprehensive series of bespoke and scalable outsourcing solutions specially designed for the Finnish market.
They range from professional employer organization employment (PEO), employer of record, and contingent workforce employment services, to help you grow effortlessly and successfully in Finland without any complications. We can also help you source, recruit, and onboard new team members locally, even if you don’t have an office in Finland.
XML provides you with everything you need to start doing business in Finland or to optimize your business if you are already operating there, leading to significant bottom-line savings and getting your business activities up and running in just days. Get in touch with the XML team to learn how we can boost your activities in Finland in a cost-effective way.
Get started now and make the most of business in Finland today!
XML has expertise and resources to meet your organization’s workforce needs wherever, and in whichever field these might be.