Payroll: how to pay an employee’s salary in Finland (2026)

What makes up the salary?

From the gross salary, tax withholding (per the tax card) and the employee’s shares of the pension and unemployment insurance contributions are deducted. What remains is the net salary the employee receives.

Employer side costs — about 20% on top of salary

On top of the gross salary, the employer pays statutory side costs that total about 20% of the salary. The largest part is the pension contribution (TyEL, the employer share is about 17%).

• Pension contribution (TyEL).
• Health insurance contribution.
• Unemployment insurance contribution.
• Work accident and occupational disease insurance.
• Group life insurance.

The contribution rates change every year and some depend on the payroll size and industry. Use about 20% as a guide and confirm the current figures.

Incomes Register reporting

Each salary paid is reported to the Incomes Register (Tulorekisteri) within five calendar days of the payment date. The employer also files a separate monthly report. Late reports can incur a late-filing penalty.

Remember these too

• A collective agreement (TES) may set the minimum pay and supplements.
• Annual leave plus holiday pay and a possible holiday bonus.
• Occupational health care — the employer must arrange preventive occupational health care.
• A written employment contract.

We handle the payroll

We calculate the salaries and handle the withholding, the Incomes Register reports and the employer contributions — in your language. You focus on the business.