Employer of Record in Finland
Expanding into Finland can be complex due to strong employment law, collective agreements and administrative requirements. With an Employer of Record (EOR), companies can hire staff in Finland without setting up a local entity.
Employer of Record in Finland - A safe route into the Finnish labour market
Finland offers high competence, a strong tech sector and a stable labour market. At the same time, the country requires a correct employment structure and careful compliance. Finland has clear employment-law rules and extensive employer responsibilities. An Employer of Record makes it possible to hire staff in Finland without creating a local entity. The EOR partner handles all formal employer duties, including payroll administration, social contributions and compliance with local legislation.
With BTR as your Employer of Record, you can hire in Finland without establishing your own company.
Employer responsibilities in Finland
Employers in Finland must, among other things:
- Pay earnings-related pension contributions (TyEL)
- Pay social insurance contributions
- Comply with working time and annual leave legislation
- Take out statutory insurances
Employers are obliged to arrange earnings-related pension cover and pay pension contributions for employees. Employers must also take out statutory accident insurance and unemployment insurance and provide occupational health care as required by law.
What does EOR mean in Finland?
BTR becomes the legal employer in Finland and manages:
- Local employment contracts
- Payroll, taxes and social contributions in Finland
- Employment-law compliance
- Reporting to authorities
- HR administration in line with local HR requirements in Finland
You still manage tasks, goals and performance.
What makes Finland unique from an EOR perspective?
Stable employment structure. Finland has a stable employment structure where legislation requires clear employment terms and correct classification between employees and independent contractors.
Migration and work permits. For international labour in Finland, a work permit most often requires actual employment with a Finnish employer; pure consultancy arrangements are usually covered by other permit rules.
Employer responsibility. The employer is largely responsible for pay and security under the contract; this responsibility is fully assumed by your EOR partner.
Benefits of EOR in Finland
- Fast market entry
- Local compliance and risk minimisation
- Less administration
- Easy to scale up or down
Why choose BTR for EOR in Finland?
- We have local employment-law expertise and ensure your employment complies with Finnish employment law
- We offer a stable and smooth onboarding process
- We have a scalable solution for expansion into Finland
- We provide personal advice
Ready to hire in Finland? Contact us and we’ll help you build your team in Finland in a safe and sustainable way.
FAQ - Employer of Record Finland (EOR) in Finland
An Employer of Record (EOR) becomes the legal employer of your employees in Finland and manages employment contracts, payroll, taxes, statutory contributions and local compliance, while you remain responsible for their day-to-day work.
TyEL is Finland’s statutory earnings-related pension insurance for private-sector employees. Employers arrange the insurance and pay the required contributions to provide employees with pension coverage. (Finnish Centre for Pensions)
No. The EOR acts as the local employer.
Employees in Finland generally earn two days of paid annual leave per month during their first year of employment and 2.5 days per month thereafter. The employer determines when the leave is taken after consulting the employee, while collective agreements may provide additional benefits. (Suomi.fi)
Employers generally deduct:
- Income tax according to the employee’s tax card
- The employee’s TyEL pension contribution
- The employee’s unemployment insurance contribution
The employee’s health insurance contribution is normally included in the tax-withholding rate rather than deducted separately. Employers also pay their own statutory social insurance contributions. (Finnish Tax Administration)
Taxation depends on the employee’s tax-residency status, length of stay and applicable tax treaty. Employees staying in Finland for more than six months are generally taxed progressively as Finnish residents, while non-residents are normally subject to a 35% tax at source on Finnish employment income. Qualifying foreign key employees may instead apply for a special 25% tax-at-source scheme. Social insurance obligations are assessed separately and may depend on whether the employee has an A1 certificate. (Finnish Tax Administration)
In many cases, yes. Foreign employers must report wages and relevant employment information to Finland’s Incomes Register when an employee works in Finland. The exact obligations depend on factors such as the employee’s length of stay, social-insurance coverage and whether the employer has a permanent establishment in Finland. (Finnish Tax Administration)
The EOR arranges the employee’s statutory TyEL pension insurance, deducts the employee’s contribution from their salary and pays both the employee’s and employer’s contributions to the pension provider. Pension benefits then accrue in accordance with Finnish legislation.
An EOR can be particularly valuable when your company wants to:
- Enter or test the Finnish market quickly
- Hire employees without establishing a Finnish legal entity
- Support short-term projects or a small local team
- Reduce the administrative burden of Finnish payroll, HR and compliance
- Employ local or international talent in accordance with Finnish requirements