Employers of Record (EOR) in Finland: A Guide for Global Teams

Finland is a common next step for growing international companies. It offers a skilled workforce, high levels of English proficiency, and a well-established tech and innovation ecosystem.

Hiring there may look straightforward from the outside, but the reality is more nuanced. Finland has comprehensive employment laws with collective bargaining agreements applying to most roles. For businesses looking to hire a couple of workers, setting up there can quickly become more work than expected.

Many organizations use an Employer of Record (EOR) to simplify the process. Services like Deel enable you to hire workers in Finland through their local entity while you continue to manage day-to-day work. This model allows you to avoid many of the complexities of establishing a Finnish entity and hit the ground running.

Our guide introduces you to EORs in Finland and all of their benefits. We also draw on Deel’s experience supporting companies in Northern Europe to explain how they work, what to expect, and how to choose the right provider.

What is an Employer of Record (EOR)?

An EOR is a third-party organization that can legally hire workers in Finland on your behalf. It takes on statutory employer obligations such as payroll processing, tax withholding, benefits administration, and compliance with Finnish employment law. While they assume these responsibilities, your company still maintains control of daily operations.

In Finland, the EOR registers with local authorities and appears on all the employment contracts. It also handles reporting to the Finnish Tax Administration (known locally as Vero), registers employees for social security and pension institutions, and ensures employment terms comply with any collective bargaining agreements (Työehtosopimus or TES).

There are two types of EOR service: Those operating through wholly-owned entities in every country and those relying on local providers. Look for an EOR like Deel with legal infrastructure in Finland to ensure you can coordinate directly with their team and receive consistent service.

Benefits of using an EOR in Finland

As well as turning to an EOR as a hiring strategy, you can expect many of the following advantages:

• Faster hiring without entity setup: EOR services like Deel allow you to hire employees in Finland within days, rather than waiting months to establish a subsidiary. This speed is especially valuable in competitive hiring markets, where delays can result in lost candidates or stalled projects.

• Lower compliance risk in a highly regulated system: Employment laws in Finland are complex with significant penalties for violations. An EOR ensures contracts, payroll, and working arrangements stay aligned with both legislation and applicable agreements.

• More predictable costs for small teams: Setting up and maintaining a Finnish entity involves legal fees, accounting services, payroll systems, and local HR expertise. An EOR is often a more cost-effective alternative if you’re only hiring a small number of employees.

• Less administrative overhead: The EOR manages HR, payroll, tax, mandatory contributions, and reporting to authorities. This spares your team from navigating local bureaucracy or coordinating multiple service providers.

• Support with benefits and payroll expectations: Beyond statutory requirements, EORs help you administer commonly expected benefits and ensure accurate, on-time monthly payroll.

• Flexibility as plans evolve: An EOR makes it easier to scale headcount up or down without fixed infrastructure costs. If Finland becomes a long-term priority, top providers like Deel can also support a move to your own Finnish entity.

How does an EOR in Finland work?

Here’s what the hiring process looks like and beyond when you partner with an EOR like Deel:

Hiring scope and offer alignment

An EOR works with you to clarify the role and hiring context. The goal at this stage is to ensure you’ve met Finnish compliance requirements, clearly defined what the position involves, and met common expectations. This includes confirming the roles:

• Scope
• Seniority
• Location
• Timing
• Employment terms

The EOR also checks that the proposed compensation and benefits are compliant. Finland does not have a statutory minimum wage, so thresholds are set through sector-specific collective bargaining agreements. The provider should check whether such an agreement applies before they move with you to the next step.

Contract preparation

Once you’ve agreed upon hiring terms, the EOR prepares a Finnish employment contract that meets standards and requirements. For example, Deel’s EOR can generate a document for each worker based on details about the role and responsibilities, working arrangement, and compensation.

Finnish law requires employment contracts to be in writing and to include specific details such as:

• Job duties
• Working hours
• Salary
• Holiday entitlement
• Notice periods
• Applicable collective bargaining agreements

Contracts must be in Finnish or Swedish, unless employees explicitly agree to another language.

Indefinite contracts are the default in Finland. You can only hire for a fixed term in limited circumstances, such as project-based work or long-term cover. If you need a temporary worker, however, your EOR can check that there’s a legitimate basis and file the paperwork to avoid compliance issues later on.

Employee registration and onboarding

With the employment contract in place, the EOR completes the registrations required to employ and pay the worker in Finland. It starts by registering the employee with vero so they can issue a tax card. This sets the employee’s income tax withholding rate based on their expected annual earnings and helps the provider calculate payroll correctly from the first pay cycle.

At the same time, the EOR enrolls the employee in Finland’s mandatory social security and insurance schemes. This includes:

• Earnings-related pension insurance (TyEL)
• Unemployment insurance
• Occupational accident insurance
• Health insurance contributions

Payroll processing and statutory contributions

After they’ve set everything up, the EOR manages ongoing payroll in line with Finnish tax and social security rules.

For each pay period, it calculates gross salary and applies income tax withholding based on the employee’s tax card. Finland’s progressive national and municipal income taxes mean these are likely to vary across roles.

The EOR also deducts contributions before sending the net salary to each worker’s Finnish bank account. In Finland, the standard payroll cycle is monthly but some sectors may require more frequent payments.

Alongside payroll, the EOR calculates and remits employer-side statutory contributions. These depend on your company size and annual turnover, and the level of industry risk. However, EORs like Deel factor any contributions into your monthly fees to make costs more predictable and manageable.

Ongoing benefits administration

At the same time as payroll set up, the EOR enrolls workers in any legally required benefits.

In Finland, employers must arrange occupational healthcare for all employees, regardless of their working hours or contract type. Coverage also must include preventative services. Additionally, group life insurance is usually mandatory under collective bargaining agreements and forms part of the standard benefits framework.

Many employers also offer supplementary benefits. As a leading global provider, Deel can advise you on how to create a competitive yet cost-efficient package and negotiate deals at volume.

Once these systems are in place, the EOR ensures benefits programs run smoothly. It coordinates with local providers, enrolls new workers, and handles approvals and updates. If you leave its service, it can also help you transfer benefits administration to your own entity.

Leave and working time management

The EOR manages working hours in line with Finnish employment law. It ensures teams are only scheduled for the standard limits, which is eight hours a day or forty hours per week.

Finland permits overtime but it’s tightly regulated with tiered premium rates. If you want to offer extra hours to workers, the EOR can check you’re paying the correct rate and giving them enough rest periods.

As well as working hours, the EOR administers statutory leave entitlements. This includes tracking holiday accrual under Finland’s Annual Holidays Act, managing statutory absences for sickness and paternity, and calculating pay.

Termination and offboarding

Termination in Finland requires careful handling due to the country’s strict requirements. Companies can only end contracts for valid grounds related to employee conduct or economic concerns. Plus, individual dismissals generally require prior warnings, ranging from 14 days to six months, unless there’s been a serious violation.

EORs manage the formal termination process for every Finnish worker. It reviews your reasons for wanting to end the contract and ensures you’re meeting the requirements. The provider also delivers notices, prepares the documentation, and calculates the final payment.

How to choose an EOR provider in Finland

Selecting the right EOR partner requires evaluating several critical factors that directly impact service quality, compliance, and employee experience.

• Finnish market expertise: The provider should demonstrate deep knowledge of Finnish employment law and local HR practices. Ask specific questions about how they handle industry-specific collective agreements, their process for staying current with regulatory changes, and their experience with local authorities.

• Compliance track record: Request information about an EOR’s compliance approach with examples of how they’ve successfully managed Finnish employment relationships without disputes or penalties. This shows you how well they can meet requirements and shield your company from risk.

• Service scope and flexibility: EORs with comprehensive platforms are more likely to be able to adapt and grow with your business. Confirm that the provider offers all services you require today plus any capabilities you may need later. For example, Deel also offers immigration support for non-EU hires, equity management, and contractor management.

• Advanced tech capabilities: Evaluate the platform's automation, AI, and analytics functionality to ensure it can deliver both speed and accuracy. Modern platforms should provide real-time visibility into operations, generate custom reports and offer self-service features to workers.

• Pricing: Ensure you understand exactly what's included in quoted fees, what services cost extra, and how pricing scales as you add employees. Hidden fees or restrictive terms can significantly impact total cost and flexibility.

• Employee experience: Your Finnish workforce will need to contact the EOR for payroll questions, benefits enrollment, and document requests. Providers that offer local-language support, intuitive employee portals, and responsive service create better experiences for your team members, which ultimately reflects on your global employer brand.

• Reputation: Research reviews on independent platforms, request client references, and check customer case studies. Long-standing clients and positive references for Finnish operations suggest they can offer a reliable service.

• Customer support: Check that the provider will be responsive so you can be sure you’ll receive help when you need it. To give you an idea of the standards, Deel provides a dedicated account manager, 24/7 customer contact hours, and AI-powered chatbots to assist you.

EORs vs other employment solutions in Finland

An EOR isn’t the only way to hire in Finland. Here’s how it compares to a Professional Employer Organization (PEO) and direct hiring:

Scale your global team across Northern Europe with Deel

Hiring through a Finnish EOR lets you employ local talent while offloading payroll, benefits, and compliance obligations. The only question is whether this model currently fits your expansion plans.

Deel is one of the leading global EOR providers. Our service connects your Finnish operations with your teams the world over and provides deep, in-country expertise.

When you partner with Deel, your company can expect:

• Wholly-owned entities in Finland and beyond
• Localized employment contracts aligned with Finnish CBAs
• Compliant payroll and tax withholding
• Benefits and occupational healthcare administration
• Termination and offboarding support
• Transition support from EOR to owned legal entity
• Continuous regulatory update via our Compliance Hub
• Dedicated in-country legal and HR expertise

Not ready to set up a Finnish entity? Speak with Deel to see how you can hire and stay compliant in Finland through our EOR services.