Employer of Record & PEO in Finland | INS Global
Countries / Finland / Employer of Record & PEO in Finland

PEO in Finland

Hire Globally, Pay Locally, Expand Effortlessly

For companies considering an expansion to Finland, there are various ways in which they can enter and set up operations. In recent times one of the more common modes of entry is through a Professional Employment Organization (PEO).

Currently present in 80+ countries worldwide, INS Global has a reputable name as a PEO service provider.

Want to have a Team in Finland TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

Want to have a Team in Finland TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

Hiring an Overseas Employee

PEO in Finland - Summary

5 Advantages of a PEO in Finland

Enter markets quickly and start your operations

You can hire your staff, get set up and begin your operations in a short space of time.

Save on expensive overhead costs

With no need to follow expensive incorporation procedures or even establish a physical presence in a foreign country, PEOs save you time and money.

Solutions for short or long-term needs

Whether you are looking to fulfill a single project or establish yourself in Finland in the long term, a PEO company can offer you a range of services to meet your evolving demands.

Ease your administrative burdens

For companies that may not have the budget or staffing to operate entire HR departments that can manage HR operations for overseas workers, PEOs provide all the services required to function efficiently.

This allows you to focus on more strategic tasks that contribute to overall success.

Combine all your HR needs into one convenient point of contact

By partnering with a professional HR outsourcing provider, you gain the skills and capabilities of an entire team of HR professionals, all of which can be accessed by a simple email.

How is a PEO Preferred Over Company Incorporation?

A PEO solution offers an efficient alternative to the usual company incorporation process and is seen by many as the preferred solution, here’s why:

  • A simple process – incorporating an entity can be a long and complicated process, especially if you are unfamiliar with local protocols.
  • Using the services of a PEO allows you to bypass the company setup and hire employees immediately.
  • Fast access – unlike with company incorporation, which can require months of preparation time, you can get started in a matter of days with a PEO.
  • Access to an HR team – by outsourcing your HR operations to a PEO service, you can access a complete suite of HR functions alongside expert global expansion support.

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

5/5

How Does a Finland PEO Work Exactly?

The process to getting started in Finland consists of a few easy steps with INS Global:

  1. You provide us with an overview of the project, detailing the scope of your needs and highlighting any concerns. You will then receive tailored recommendations that are best suited to your business requirements.
  2. Your employees will then be hired and onboarded in line with local regulations through our PEO in Finland.
  3. The entire operation of providing administration and required onboarding processes is then taken care of by INS Global.
  4. While we take care of the HR steps, you can begin your business operations and focus on growth. 

The Difference Between an EOR in Finland and an international PEO

While often misunderstood as synonymous with a PEO, a global Employer of Record (EOR) acts as the entity that legally hires and manages your staff on your behalf and while a PEO generally offers HR services as a third-party company. With both PEO and EOR services, you gain access to an entire external HR department, which can handle all administrative and regulatory functions on your behalf.

INS Global offers both PEO and EOR services in Finland to meet your demands. Contact our team of specialists today to discuss your circumstances and see which may be best for you.

Labor Law in Finland

Employment Contracts In China

While written employment contracts are not required, employers must provide an employee with a written statement containing the key terms of employment before the employee’s first salary period. This document should include:

  • The main duties of the employee
  • Type of employment and duration of the contract (if it’s a fixed-term contract)
  • Any applicable collective agreement
  • Probationary period
  • Wage or salary terms

Working hours and holiday periods

Working hours and Overtime in Finland

 In Finland, working time includes the daily hours worked and the time the employee is obliged to be at the site of work. Generally, the maximum working hours are 8 hours a day or 40 hours per week.
The Working Time Act also provides other ways of arranging the working hours within the prescribed limits for purposes of flexibility.

Overtime pay in Finland is 150% of standard pay.

Holidays and Paid Leave

Employees are entitled to 2.5 weekdays of paid annual leave for each month of service. Every calendar month with at least 14 days is counted for this purpose.

Generally, annual paid leave period is granted as a continuous period during the summer holiday (between May and September). Within certain limitations, alternative leave periods are generally left to the employer’s discretion. There are 12 days of annual public holidays in Finland during which an employer must provide time off or holiday pay.

Sick Leave Policy

Inability to work due to illness or injury is considered an exception to the general rule, which states that remuneration needs only be made for work actually done.

An employee becomes entitled to at least 9 days of sick leave pay after 1 month of employment has been completed.

If an employee has been working for less than a month, the employee will be entitled to only half of their wage for the period of disability.

Maternity and Paternity Leave

Maternity leave starts between 50-30 working days before the due date. At the start of maternity leave, the mother is entitled to Finnish social insurance (known as Kela), which will pay for 105 working days.

Finnish law also permits fathers to take paternity leave for a maximum of 54 working days.

Finnish social insurance will contribute to the father’s income during this time for a period of 3 weeks.

Tax Law and Social Security Contributions

Residents of Finland are taxed on their worldwide income at progressive rates for national tax purposes. In contrast, a flat rate is imposed for municipal taxes (16.5-23.5% based on the locality). The lowest national income tax bracket starts at 6%, while the highest is currently set at 31.25%.

Non-resident individuals based in Finland are only taxed on their Finnish-sourced income. Income tax for non-residents is set at 35%. Employers are expected to contribute between 19.2-21.4% of an employee’s salary to their social security contributions.

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FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.

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