Guide to living and working in Finland

Finland

 View the latest Finland Jobs on Exposure Jobs

 

 

 

Country Overview

 

Population

5.2m

Unemployment Rate

7.7% (11/07)

Average annual unemployment rate 1995 – 2004

10.9%

GDP

€155bn / $230bn

GDP per head

€24,937 / $37,150

Capital

Helsinki

Major language

Finnish, Swedish

Life Expectancy (UN)

76 years (men)

82 years (women)

Monetary unit

1 euro = 100 cents

Internet domain

.fi

International dialing code

+358

 

Finland has a highly industrialised; largely free-market economy with a per capita output of similar levels to the UK, France and Germany. Its key economic sector is manufacturing - principally the wood, metals, engineering, telecommunications and electronics’ industries. Trade is important; exports equal 40% of GDP and Finland excels in high-tech exports, e.g., mobile phones. Except for timber and several minerals, Finland depends on imports of raw materials, energy, and some components for manufactured goods. Owing to the climate, agricultural development is limited to basic products for self-sufficiency. Forestry, an important export earner, provides a secondary occupation for the rural population. However, high unemployment remains a persistent problem in Finland.

 

The Economy


Industries include: metals and metal products, electronics, machinery and scientific instruments, shipbuilding, pulp and paper, foodstuffs, chemicals, textiles, and clothing.

 

Pay

 

 

Human development Index

Ranking:  11th
Index value:  0.952


 

 

The Human Development Index combines statistics on GDP, adult literacy, average years of schooling and life expectancy to provide an indicator of human development. The HDI shown here gives the ranking of 24 countries among 177. See http://hdr.undp.org/en/ for more information.

 

Getting a job

Overview of the labour market:

Long-term unemployment is common in Finland, but its level has been successfully reduced in recent years. There has been a growth in employment in all sectors with the exceptions of agriculture and forestry. In particular, employment has increased in industry, construction, commercial financial and business services. Women have a high participation in the labour market in Finland, with an unusually high proportion in full-time employment; this is in part due to various social policies which facilitate childcare.

The number of new job vacancies has increased in recent years. In particular, jobs have increased in transport, healthcare and social services, commerce and industry. There have also been more job vacancies than in previous years in work requiring a high level of education. These new job vacancies are often fixed-term, but fixed-term posts only account for less than a fifth of all jobs. Part-time working is not particularly common in Finland (representing only about 10%), but has recently become more common.

In the Finnish labour market it is common to have both unemployment and labour shortages due to a mismatch of workforce and jobs, both in terms of occupation and locality. New manpower is sought throughout Finland; however the greatest demand for labour is in Southern and Western Finland – in centres of growth and in the Greater Helsinki metropolitan area. However, high prices, housing costs and a wage level which fails to meet these, make a move to the metropolitan area difficult. This fails to attract foreign labour, since there is a need to secure accommodation before moving to Finland.The mismatch between supply and demand for specific occupations is a consequence of changing demands in the labour market. Mechanisation and automation means workforce requirements are lower in manufacturing occupations, and new jobs in this sector require a different set of skills. The services market in Finland is relatively undeveloped compared to other western countries. It is this market which will provide new jobs in the future for people with a lower level of training.

Applying for a job:

It is a good idea to have Finnish and Swedish translations of all your certificates, depending on the employer. In your CV you should mention your most recent job and education/training first, and put the oldest information at the end. The length of your CV should not exceed two A4 sheets. Attach your photograph, especially if you are looking for work in the service sector. In addition to your CV you will need an application letter. If you are invited to an interview, take with you your most important job references and educational certificates.

 

Conditions and rights

Employment law:

In this highly unionised country, terms and conditions are laid down within both a framework of progressive employment laws and a rolling two-yearly incomes policy agreement. All new laws are subject to extensive consultations with social partners and collective agreements become generally effective in their sectors if deemed appropriate by a tripartite committee.

Working hours:

Standard hours: maximum regular working hours in Finland are 8 hours a day and 40 hours a week.
Overtime: may be arranged only if the employee separately consents to this on each occasion. A maximum of 138 hours of overtime can be arranged during a four month period, with a maximum of 250 hours in one year. Increased wages must be paid to the employee for overtime. The employer must keep a record of working hours, showing the hours of work and the remuneration paid.

Holidays and leave:

Annual leave: Leave is earned by carrying out work during the holiday qualifying year (which runs from the 1st April to the 31st March), according to either the 14 day or the 35 hour rule. Employees are entitled to 2-2.5 days for qualifying month worked, depending on the duration of the employment contract.
Sick leave: When employees fall ill, they must immediately notify their place of work. A doctor’s certificate is generally required after the third sick day at the latest, and in some sectors right from the first sick day. The employer is obliged to pay wages during the qualifying period for daily sickness allowance. Once the employer’s wages payment obligation ends, the employee will start to receive daily sickness allowance from his/her sickness insurance. The allowance is about 70% of normal salary.
Family leave: includes maternity leave, special maternity leave, paternity leave and parental leave, childcare leave and partial and temporary childcare leave. When family leave terminates, the employee has the right to return to his or her own job in the first instance, or failing that, to similar work in accordance with the employment contract at his or her old workplace.
Maternity and parental leave: The total length of maternity and parental leave is 263 weekdays. The length of the leave for the mother’s sole use is 105 days. The mother and father jointly agree on the use of the remainder of parental leave. The father has the right to take paternity leave of 18 weekdays at the same time as the mother, and to receive paternity allowance for that time. During the period of family leave KELA will pay a daily allowance.
Study leave: The purpose of the study leave system is to improve the educational and study opportunities of the working population. Study leave rights apply to employees, public sector employees and office holders. A person whose full-time employment contract with the same employer has lasted a total of one year is entitled to study leave.

 

Contracts

Types of employment:

A permanent employment contract may be entered into by a person aged 15 or above, after completing their compulsory education. The majority of employment contracts are permanent, although short-term employment contracts have become more common. Part-time work, however, is not as common in Finland as it is elsewhere in Europe. Thanks to family leave and the day care system, women participate actively in working life, and are generally engaged in full-time work. In Finland there are many opportunities for seasonal work. For example, summer workers are required in the horticultural, agricultural, catering and tourism sectors. The Centre for International Mobility (CIMO) coordinates many practical training programmes. In addition, various student organisations offer practical training opportunities to foreign students.

Employment contracts: Under the Contracts of Employment Act, an employment contract can be made verbally, in writing or electronically. However, it is recommended that an employment contract be made in writing, so that both parties know and can prove what has been agreed. Regardless of the type of contract, the employer is still obliged to give the employee the terms and conditions of employment in writing. At the start of the employment contract a trial period may be agreed. This trial period may last no more than four months. During the trial period, either party may terminate the employment contract without notice. If the employer arranges special training related to the employee’s work, the trial period may last no longer than six months.

 

Visas and work permits

Visas:

  • Residents of countries that are not members of the EU or Nordic countries require a valid passport.
  • A visa is not required for a stay of less than 90 days.
  • In most cases, a passport must be valid for at least 6 months.

Finland is a signatory to the Schengen Treaty. The 15 Schengen countries are: Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Italy, Greece, Luxembourg, Netherlands, Norway, Portugal, Spain and Sweden. With a Schengen visa, you may enter one country and travel freely throughout the Schengen zone.

Passport holders from the EU/EEA/EFTA and/or following countries do not need a visa to visit Finland or other Schengen countries: Andorra, Argentina, Australia, Bolivia, Brunei, Bulgaria, Canada, Chile, Costa Rica, Croatia, El Salvador, Guatemala, and Honduras. Israel, Japan, Republic Of Korea, Liechtenstein, Malaysia, Mexico, Monaco, New Zealand, Nicaragua, Panama, Paraguay, Romania, San Marino, Singapore, Switzerland, United Kingdom, United States, Uruguay, Vatican and Venezuela.
Nationals of countries not mentioned above will need a visa to visit Finland.

Work permits:

Citizens of EU and EEA Member States: may work in Finland without a work permit. A resident of the EU from outside the Nordic Countries must have an EFA card for a stay of more than 90 days. The card is a combined permit for work and residency.

‘New’ EU citizens: Information regarding the employment of citizens of the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovenia and Slovakia must still be supplied to an employment office in order to be registered. Employment details to be registered may be supplied by either the employer or the foreign worker concerned. Notification must be sent no later than 14 days after the start of employment. Notification is not required if the employment is for less than 14 days, or if the police have already registered the worker's residence permit.

A foreign resident who is interested in working in Finland must obtain a work permit. A work permit is only granted to:

  • skilled workers
  • individuals with no criminal background 
  • for positions which do not present a threat to local employment or the employment of EU workers.

Work permits are granted for a maximum of one year. At the end of this period a permit can be extended each year on the basis of the individual’s continued employment.

 

Tax, social security and healthcare

Taxation system:

In Finland, taxation of an individual's income is progressive: the higher the income, the higher the rate of tax payable. In 2008 the income tax rate (national tax) for an individual was between 8.5-31.5%. In addition to direct taxation there is also municipal tax in Finland, this tax is payable by an individual on his or her income and it fluctuates between 16-21% depending on the municipal authority. Church tax of 1-2% is also payable.

The combined top marginal tax rate in Finland is about 60%. Reduced rates of tax or exemption are available for certain income earners. The standard rate of Finland corporate tax in 2008 is 26%.

An individual is liable for tax on his income as an employee and on income as a self-employed person. Tax will be payable on income earned in Finland and overseas by an individual who is a "permanent resident" of Finland. A Finnish resident, who receives a salary overseas and lives overseas continuously for at least 6 months, is exempt from tax on certain conditions. A foreign resident who is employed in Finland pays tax only on income earned in Finland. To be considered a Finnish resident, the taxpayer must be able to show that his or her life is centred in Finland and /or that they have lived in Finland continuously for 6 months.

Finland Individual income tax rates (national tax) 2008:

Tax Base (Euros)

Tax %

1 – 12,599

0%

12,600 - 20,800

8.5%

20,800 - 34,000

19%

34,000 – 62,000

23.5%

62,000 and over

31.5%

 

Social security system:

Social security rights in Finland comply with EU statutory provisions, and are the same as the social security rights applicable everywhere in the EU. Social benefits are funded by social insurance payments from employers and employee, in addition to state and municipal payments. When a person starts work in Finland, he or she makes payments into the Finnish social security system and thus earns the right to benefits. In Finland the right to social security is based primarily on residence in the country. The right is always individual, regardless of whether or not the person is married. The right to certain residence-based benefits requires that the person works or carries on a business in Finland for at least four months.

Basic social security for all residents in Finland is guaranteed by the Social Insurance Institution (KELA). The Finnish social security system guarantees a minimum income and offers financial support to mothers after birth, students, the sick, the unemployed and the disabled and also to pensioners. A recently unemployed person must immediately register as a jobseeker at the local employment office in order to obtain unemployment benefit. The size of the employment pension is determined by the number of years worked and earnings. The majority of the employee’s pension cover will be arranged and paid by the employer.

Health system:

In Finland both the public and the private sector offer high-quality healthcare services. Public specialised health care is the responsibility of the hospitals owned by the municipalities or by the state. All holders of the KELA card issued by the Social Insurance Institution may use public sector health care services. Foreigners can obtain a card if they live in Finland permanently. Residence is regarded as permanent if the foreigner’s employment agreement is in force for at least two years.

Citizens of EU countries and of Switzerland who are temporarily resident in Finland also have the right to use public healthcare services if they have a European Health Insurance Card. This card entitles its holder to use Finland’s public healthcare services at the same price as Finnish citizens. The purpose of the card is to offer healthcare to foreigners resident in Finland in the event of sudden illness, or in a situation where an existing chronic illness requires immediate treatment.

The private sector offers health and medical treatment services in the larger municipalities. The Social Insurance Institution reimburses part of the fees charged by private doctors, if the customer has a KELA card or European Health Insurance Card. Application for reimbursement must be made to KELA within six months.

 

Lifestyle

Finland has one of the best educated populations in Europe with highly sophisticated healthcare and education systems. Culture is of great importance to residents as well as the natural environment.

 

Report complied: 2008
Copyright © 2008 Exposure Jobs