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Wages & Conditions of Employment

Working Hours
Wages
Accident Insurance
Holidays
Additional Information


Working Hours

Regular working hours are usually at most 8 daily hours and 40 weekly hours. In a two-week period the working hours are not more than 80 hours and in a three-week period 120 hours. The weekly hours may also be arranged in longer periods during which the average weekly hours do not exceed 40 hours. The working hours may be arranged by law or collective agreements alternatively, for ex. in two- or three-week periods.

Each workplace must have a work schedule from which the workers regular working hours, beginning and ending times and the placement of the rest periods can be read. To avoid possible misunderstandings employees should keep their own record of their worked hours and received wages.

More Information:
Työsuojelupiirit provides information on the definition of working time, flexible hours, shift-work, overtime, time-keeping and more.


Wages

There is no universal minimum wage in Finland. The collective agreement in most employment branches determines the pay and other minimum employment terms. It is also possible to agree on benefits such as food and residence in addition to the wage.

Wages in collective agreements are generally determined according to the employees' professional skills, experience and the geographical situation of the workplace.

Pay during illness
After working for the same employer for at least a month, employees have the right to receive sick-leave pay if they are unable to work during to illness or injury. To be entitled to sick-leave pay the working inability must be determined in a way satisfactory to the employer (for ex. a doctors certificate). In the case of an employment that has lasted less than a month, sick leave will be compensated with 50% of the normal wages. According to the law the employee is entitled to sick-leave payment for nine days, but usually the payment period is longer according to the applicable collective agreement.

Increased pay for overtime
Working hours exceeding the regular working hours are overtime hours. Overtime is compensated with additional, higher pay:

  • for the first two daily hours of overtime normal pay is increased by 50% and for the following hours by 100%
  • weekly over-time hours are increased by 50%. The 12 first overtime hours of a two-week period and the 18 first hours of a three-week period are increased by 50 % and the following hours with double pay.
  • Sunday work is paid with doubled wages
  • Separate evening and night work compensations are paid according to the collective agreements

More Information:
Työsuojelupiirit provides information on minimum, normal and reasonable wages, sick pay, pay calculation, and more.

See also: Employment Law & Disputes

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Accident Insurance

A foreign employee working for a Finnish employer in Finland is to be insured by the employer with a mandatory accident insurance. The insurance covers both accidents at work and on the journey to work.

If a foreign employer has sent an employee temporarily to work in Finland, the employee may be covered by the sending country’s insurance, in which case the insurance premiums are paid only there. Usually, unless the country in question is a EU/EEA or other country with a social security agreement, a posted worker’s certificate must be acquired from the sending country. In questions concerning accident compensation an employee can turn to The Federation of Accident Insurance Institutions (FAII).


Holidays

An employee has a right to receive pay also for the time he/she is on annual holiday. Normally holiday leave accumulates 2 days (when employment has lasted less than 1 year) or 2½ days for each holiday credit month. Normal wages are paid for the time an employee is on holiday. Earned holiday leave cannot be replaced with compensation pay unless the holiday cannot be given due to the ending of the employment. Holiday compensation must also be paid if the worked hours do not entitle to holiday leave (when working hours are under 35 h/month or working days under 14 days/month).

Holiday compensation is 9-11,5%, in the construction branch 18.5%, of the accumulated wages during the holiday credit year, excluding raised pay for overtime or emergency work.

Holiday compensation must be paid when the employment ends or, if so agreed, in addition to every monthly wage. According to many collective agreements the employee also has a right to additional holiday money, which is usually a half of the holiday wages.

More Information:
Työsuojelupiirit provides information on statutes, definitions, employees' rights and more.

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Additional Information
Työsuojelupiirit Eployment matters, Employment contract, Working time records, Payment of wages, Annual holidays, Solving safety and health problems at the workplace
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