How Fast Can You Hire in Finland Using an EOR?

Key Takeaways 

• Using an EOR, most companies can have an employee hired and working in Finland within one to three weeks 
• Setting up your own legal entity in Finland takes three to six months before you can make a compliant hire 
• The main factors affecting speed are the candidate's notice period, employment contract requirements, and payroll setup 
• Finland has strong employee protections and specific requirements around employment contracts, working hours, and benefits that the EOR handles on your behalf 
• Swapp Agency has its own entity in Finland, which means faster setup and direct local expertise 

Introduction

When companies decide to hire in Finland, the question of timeline comes up almost immediately. How long does it actually take? The answer depends on whether you are setting up your own entity or working through an Employer of Record, and the difference between the two is significant. 

This article covers what the hiring timeline looks like when using an EOR in Finland, what affects the speed of the process, and what Finnish employment law requires you to be aware of before making the hire. 

How Long Does It Take to Hire in Finland Through an EOR? 

Most companies working with an established EOR that has its own entity in Finland can complete the hiring process in one to three weeks from the point a candidate has been identified and agreed to an offer. 

The steps involved are straightforward. The EOR prepares a compliant Finnish employment contract, the employee reviews and signs it, payroll is set up in the Finnish system, and the employee registers with the relevant Finnish authorities. None of these steps require the client company to have any local presence or to deal directly with Finnish employment administration. 

The candidate's notice period at their current employer is usually the biggest variable. Finnish law allows notice periods of up to six months depending on the length of the employee's previous employment, though in practice many candidates have notice periods of one to three months. This is not something the EOR controls, but it is worth factoring into the hiring timeline from the start. 

How Does This Compare to Setting Up Your Own Entity in Finland? 

Registering a legal entity in Finland through the Finnish Patent and Registration Office (PRH) takes between one and three months for the registration itself. Before you can hire, you also need to register with the Finnish Tax Administration, set up payroll, and in some cases register as an employer with the relevant pension and insurance providers. 

From the decision to expand to the first compliant hire, the realistic timeline for a company establishing its own Finnish entity is three to six months. For companies that want to move quickly, or that are hiring one or two people rather than building a large operation, this timeline and the associated administrative burden often makes EOR the more practical choice. 

What Finnish Employment Law Requires 

Finland has strong employment protections, and Finnish law sets out specific requirements that apply to every employment relationship regardless of who the employer is. 

Written employment contracts Finnish law requires employment contracts to be in writing when the employment is for more than one month. The contract must include the employer's details, the employee's role and duties, the place of work, the start date, the applicable collective agreement if one applies, the salary and payment schedule, working hours, and the notice period. 

Collective agreements Finland has a high rate of collective bargaining coverage, and many sectors are covered by industry-wide collective agreements that set minimum terms for salary, working hours, and benefits. The applicable collective agreement depends on the sector the employee is working in. An EOR with local expertise will identify the correct agreement and ensure the employment contract complies with it. 

Annual leave Finnish employees are entitled to annual leave under the Annual Holidays Act. The standard entitlement is two and a half days of leave per month of employment, which works out to 30 days per year for employees who have been employed for at least a year. During the first year of employment the entitlement is two days per month. 

Sick leave Employees in Finland are entitled to sick pay from their employer for the first nine working days of illness. After that, the Social Insurance Institution of Finland (Kela) pays sickness allowance directly to the employee. The employer continues to pay salary during the waiting period under most collective agreements. 

Pension contributions All employees in Finland must be covered by the Employees Pensions Act (TyEL). The pension contribution is split between the employer and the employee, with the employer contribution currently sitting at around 17% of gross salary, though this varies slightly by age group. 

Occupational health services Finnish employers are legally required to arrange occupational health services for their employees. This is a mandatory cost that is often overlooked when budgeting for a Finnish hire. 

What Are the Total Employment Costs in Finland? 

The total cost of employing someone in Finland is higher than the gross salary alone. Employer contributions add considerably to the base cost. 

The main employer-side costs on top of gross salary include: 

• Pension contributions (TyEL): approximately 17% of gross salary 
• Occupational accident and disease insurance: approximately 0.7% of gross salary 
• Group life insurance: approximately 0.06% of gross salary 
• Unemployment insurance contribution: approximately 0.5% for the first portion of the payroll 

In total, employer contributions in Finland typically add around 20 to 25% on top of gross salary, making Finland somewhat less expensive than France or Sweden in terms of employer burden, but still significantly above what companies are used to in North America or parts of Asia. 

An EOR will provide a full cost breakdown per employee before the hire is confirmed, which allows the client company to budget accurately without any surprises. 

What Affects the Speed of Hiring in Finland? 

Several factors can slow down or speed up the process beyond the standard one to three week timeline. 

The EOR's local setup An EOR that operates through a third-party partner in Finland rather than its own entity adds a layer of complexity that can slow things down. An EOR with its own Finnish entity can move faster because the employment infrastructure is already in place. 

The applicable collective agreement Identifying and applying the correct collective agreement takes some time, particularly in sectors with complex agreements. A locally experienced EOR will have handled this before and can move through it quickly. 

The employee's documentation If the employee is not a Finnish citizen or EU national, work authorisation may be required before employment can begin. For EU nationals, there is no permit required, but they may need to register with the Finnish Digital and Population Data Services Agency (DVV) if they are relocating to Finland. For non-EU nationals, a residence permit for an employed person must be obtained through the Finnish Immigration Service (Migri), which adds time to the process. 

Payroll cut-off dates If the hire date falls close to a payroll cut-off, the first salary payment may be delayed by a few weeks. Coordinating the start date with the payroll schedule avoids this.  

Can You Hire Remote Employees in Finland Through an EOR? 

Yes. An EOR can employ Finnish residents who work remotely for a foreign company. This is one of the most common use cases for EOR in Finland, particularly for companies that have found a strong candidate in Finland but have no intention of building a physical Finnish operation. 

The employee works remotely, the EOR handles their employment administration locally, and the client company manages their work as they would any other remote team member. The employee has full Finnish employment protections, pays Finnish taxes, and contributes to the Finnish pension system. 

Is Finland a Good Market for International Expansion? 

Finland has a population of around 5.5 million, a highly educated workforce, and strong expertise in technology, engineering, and design. Finnish professionals are well regarded internationally, and English proficiency is high, which makes hiring and onboarding straightforward for international companies. 

For companies looking to establish presence in the Nordic region, Finland offers a stable regulatory environment, a strong digital infrastructure, and access to both the Finnish market and broader Nordic business networks. 

The talent market is competitive in some sectors, particularly software development and engineering, but less saturated than markets like Sweden or the United Kingdom. 

Summary 

Hiring in Finland through an EOR is fast relative to establishing your own entity. Most hires are completed within one to three weeks once a candidate is in place, with the main variable being the candidate's notice period rather than the employment setup itself. Finland has clear and well-structured employment requirements around contracts, collective agreements, annual leave, sick pay, and pension contributions, all of which an EOR handles on your behalf. For companies hiring one to five people in Finland without a local entity, EOR is the most practical and fastest route to a compliant hire. 

Frequently Asked Questions 

How long does it take to hire someone in Finland using an EOR? Most EOR providers with their own entity in Finland can complete the hiring process in one to three weeks from the point a candidate has accepted an offer. The main factor affecting the timeline is the candidate's notice period at their current employer, which can range from one to six months under Finnish law. 

Do I need a legal entity in Finland to hire an employee there? No. An Employer of Record acts as the legal employer in Finland on your behalf. You do not need to register a Finnish company, set up local payroll, or deal with Finnish employment administration directly. 

What are the employer costs in Finland on top of gross salary? Employer contributions in Finland typically add around 20 to 25% on top of gross salary. This includes pension contributions, unemployment insurance, occupational accident insurance, and group life insurance. Occupational health services are also a mandatory employer cost. 

Does Finnish employment law require a written contract? Yes. For any employment relationship lasting more than one month, Finnish law requires a written contract covering the role, salary, working hours, notice period, and the applicable collective agreement if one applies to the sector. 

Can I hire a remote employee in Finland without an office there? Yes. An EOR can employ Finnish residents who work remotely for your company. The employee has full Finnish employment protections and the EOR handles all local employment administration. 

What is a collective agreement and does it apply to my hire in Finland? Collective agreements are industry-wide agreements between employer associations and trade unions that set minimum employment terms including salary floors, working hours, and benefits. Finland has a high collective bargaining coverage rate, and many sectors are covered by one. An EOR will identify whether a collective agreement applies to your hire and ensure the contract complies with it.