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
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).
A PEO (Professional Employer Organization) offers companies around the world a quick and safe way to expand their operations to overseas markets by taking charge of essential HR services. Through a PEO in Finland, companies can hire and manage employees overseas in as little as 48h.
An Employer of Record (EOR) in Finland provides companies with a cost-efficient and secure way to follow global expansion strategies by acting as the employer for oversees workers to simplify tax and compliance assurance responsibilities. For companies looking to boost their global mobility potential, INS Global’s EOR provides the perfect mix of experience and expertise in the international market.
Currently present in 80+ countries worldwide, INS Global has a reputable name as a PEO service provider.
You can hire your staff, get set up and begin your operations in a short space of time.
With no need to follow expensive incorporation procedures or even establish a physical presence in a foreign country, PEOs save you time and money.
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.
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.
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.
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:
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.
The process to getting started in Finland consists of a few easy steps with INS Global:
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.
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:
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.
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.
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 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.
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.
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.
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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