Employees in Finland
- Opening Hours
- Legal Weekly Duration
- Normal working hours may not exceed eight hours per day and 40 hours per week.
- Maximum Duration
- Daily overtime begins after the first eight hours and weekly overtime after the first 40 hours, unless lower thresholds have been negotiated in collective agreements. The maximum possible overtime in any four-month period is 138 hours, and in one calendar year, 250 hours. Exceptions to the ceiling are allowed in certain cases.
- Night Hours
- From 11.00 pm. until 6.00 am.
- Working Rest Day
- According to the Working Hours Act, employees must be allowed a minimum weekly rest period of 35 consecutive hours once a week. It must include Sunday, in part or in whole, whenever possible.
- Paid Annual Vacation
- Employees have the right to 2 weekdays of paid annual holiday per full holiday entitlement month (during which the employee has worked for at least 14 days or at least 35 hours) for the first year of employment. This rises to 2,5 weekdays of holiday per full holiday entitlement month if employment has continued for at least one year before the end of the holiday entitlement period (the period begins on April 1st and ends on March 31st).
- Retirement Age
- Employees can retire with a pension between the ages of 63 and 68.
- Child Labor and Minimum Age For Employment
- The law prohibits children under age 16 from working more than six hours per day and from working at night.
- Informal Labor Market
- Informal labor is not particularly developed.
The 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 was 13,80 EUR in the manufacturing industry (4th quarter 2006).
- Other Forms of Pay
- Pay For Overtime
- The bonus paid for overtime on weekdays and Saturdays is 50% for the first two hours and 100% for the reminder. Sunday pay is double the regular pay.
- Pay For Rest Days Worked
- If an employee has had to work during a weekly rest period, he or she must be allowed compensatory paid reduction of working time equivalent to the weekly rest period lost or the employee must be paid a sum equivalent to the ordinary rate of pay as compensation for the weekly rest period.
- Pay For Night Hours
- Some percentages higher than normal wage. Different standards depending on the industry; wages are agreed on a trade union level.
- Pay For Overtime at Night
- According to the overtime pay standard.
Social Security Costs
- The Areas Covered
- In Finland, an employer must take out pension insurance for all his/her employees if the minimum monthly salary paid by the employer to the employee is 46.08 € per month. The statutory contributions of the employer also include employment accident insurance contribution, unemployment insurance contribution, employee’s group life insurance contribution and social security contribution.
Contributions Paid By the Employer: A private employer?s social security contribution for 2007 varies being 2,951%,
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.
Contributions Paid By the Employee: - 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.
- Competent Organization
The Social Insurance Institution of Finland (KELA)
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