Finland, famously known as the “Land of a Thousand Lakes,” is more than just another Nordic country — it is one of the most progressive and the happiest countries in the world that is aiming to become carbon neutral by 2035. A consistent #1 ranking in global happiness reports reflects Finland’s high levels of societal trust, transparency, and a lack of corruption. 

The Finnish economy is a highly industrialized, mixed model built on abundant natural resources and capital investment. Sustainability, technological prowess, business excellence, and innovation creates an open and competitive economy that serves as an ideal launchpad for businesses. 

Finland’s legacy includes one of the best education systems in the world and world-changing inventions such as the first functioning flight recorder (the black box) in the 1940s, the heart-rate monitor in the 1970s, and the world’s first 5G network just a few years ago. Iconic brands like Nokia, which revolutionized mobile phones in the 1990s, originate from Tampere, Finland’s third-largest city, further solidifying its reputation as a hub for technological advancements. 

With a GDP projected to reach $306 billion by the end of 2025, Finland presents businesses and startups with a supportive ecosystem for growth. Its service sector dominates, employing the majority of the workforce and contributing most to the country’s GDP.

Key export industries include machinery, valued at $11.91 billion in 2023, and mineral fuels and oils, contributing $7.85 billion the same year. The country is also a leader in electrical and electronic equipment.

Finland’s work culture, characterized by low hierarchies and a strong emphasis on work-life balance, adds to its appeal for professionals and entrepreneurs alike. From advanced industrial machinery to groundbreaking telecommunications, Finland has transformed itself into an exporter of capital, financing global industrial growth.

Beyond the business environment, Finland offers a lifestyle that’s hard to rival. Its extensive social safety net, excellent public services, gender equality, and unparalleled access to nature provide an environment where businesses and their teams can thrive. The Finnish anti-stress lifestyle and the unique balance between work and leisure are major draws for international talent and investors.

Finland’s strategic location as a gateway between Europe and Asia, combined with its striking infrastructure and business-friendly policies, makes it an ideal destination for expansion.

Whether you’re looking to launch a startup, invest in sustainability, or tap into one of the world’s most innovative economies, Finland provides the foundation for long-term growth and success. If you’re looking to expand your business into Finland, some key considerations, such as partnering with a PEO, could benefit you. Here’s how. 

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Expanding Your Business in Finland With a PEO

Finland, renowned for its 100% literacy rate and world-class education system, is an exceptional destination for businesses seeking expansion. Almost 90% of Finnish people between the ages of 25 and 64 hold at least an upper secondary education certificate, which contributes to a highly skilled and adaptive workforce. 

Helsinki, Finland’s capital and driving force of the economy, offers free healthcare and education to all the residents. Besides being one of the safest capitals in the world, it also offers a work-life balance that attracts global talent.

Hiring such a skilled workforce in Finland for your business is quite a task, especially when the unemployment rate is below 9%.

The comprehensive social policies such as the Labor Protection Act in Finland also make labor laws complex to understand.

Understanding how employee agreements work is quite critical when expanding your business to Finland. This is where Professional Employer Organizations (PEOs) come in.

A PEO hires local employees for you in the country. The organization is also responsible for finding the most suitable workforce. They simplify compliance, payroll, and HR processes. 

Through comprehensive HR outsourcing, foreign companies and startups can establish a strong local presence in Finland, hiring the local workforce through a PEO that understands the rules, regulations, and laws of the region.

When a foreign entity like yours finds it difficult to comprehend local workplace requirements, PEO services come in handy. 

A PEO manages the following: 

  • All sorts of HR-related tasks 
  • Onboarding, offboarding, and termination of employees
  • Talent acquisition 
  • Administering employee benefits 
  • Tax compliance services
  • Payroll management 
  • Workforce management 

Start hiring with a Finland PEO

Let us handle the complexities of hiring, compliance, and payroll in Finland while you focus on growing your team.

  • Hire employees in Finland with a Finland EOR
  • No local entity is needed
  • Pricing starts at USD 199 per employee
  • Remote People can also help you find the best talent in Finland

👉 Get Your Customized Finland PEO Proposal Today!

What Services Do PEOs in Finland Provide?

PEOs cater to businesses and startups by managing all HR-related tasks. Besides hiring the local workforce, PEOs also ensure compliance with local labor laws and tax management and handle all workforce-related queries. 

Here are some PEO services you can benefit from. 

Market Entry and Talent Acquisition

Hiring the best candidates looks much different today than it did a few years ago. Finland’s 100% literacy rate and highly educated workforce make it a hub for top talent. Plus, the highly qualified expats also contribute to the economy as skilled professionals flock to this country.

You can count on the PEOs to hire people from this rich talent pool. The PEOs with a strong local hold can also better manage hiring practices in the region.

They manage onboarding, offboarding, and termination and look into compensation packages that align with Finnish standards.

By partnering with a PEO, you can focus on strategic operations while the PEO manages the HR tasks, compliance, and market entry logistics.

Payroll Management 

Managing payroll in Finland requires strict compliance with Finnish labor laws, tax regulations, and social security contributions.

Employers must adhere to mandatory contributions for earnings-related pensions, health insurance, unemployment insurance, and income taxes, which are essential parts of Finland’s well-regulated social welfare system.

Employment contracts are expected in Finland. They should also be very concise, strong, and in accordance with the Finnish trade union.

Compliance with the Finnish Employment Contracts Act is mandatory. The Employment Contracts Act lays down fundamental legal provisions concerning working life in Finland. These agreements govern important aspects such as minimum wages, overtime pay, and annual holiday entitlements, ensuring fair treatment of employees.

Regulatory bodies such as the Finnish Tax Administration (Vero) and the Employment Pension Institutions oversee the enforcement of these regulations, requiring businesses to stay up-to-date with changing compliance requirements.

A PEO in Finland manages the complexities of payroll processing, including accurate salary disbursements, tax calculations, and timely filings. Your PEO also helps your business comply with Finnish regulations and mitigate risks while you focus on strategic operations and growth.

Compliance With Finnish Labor Laws

Finland has a well-regulated labor market where compliance with employment laws is more than just essential. The standard workweek is 37.5 hours, as outlined in collective agreements, which play a central role in governing wages, working conditions, and employee rights.

Finland does not have a statutory minimum wage; instead, industry-specific minimum salaries are determined through these agreements. If your business fails to comply with the labor laws, you may face hefty penalties. Therefore, it is critical for foreign businesses to adhere to local regulations.

Partnering with a PEO saves you much trouble. A PEO drafts employment contracts, manages workplace policies, and ensures compliance with Finnish labor laws. They also handle employee benefits, including health insurance, pensions, vacation allowances, etc.

Cultural and Business Insights

Finland has a very pleasant work environment. In fact, Finland is frequently considered one of the top countries globally for work satisfaction. The Finnish workplaces also prioritize work-life balance and emphasize transparency.

PEOs in Finland can provide critical insights into such cultural elements and help you integrate them into your business environment. A PEO’s invaluable local expertise will help align workplace policies with local expectations.

By partnering with a PEO in Finland, you can focus on strategic growth while delegating the complexities of HR, compliance, and workforce management to experts who understand Finland’s unique regulatory and cultural requisites. 

How Does a PEO in Brunei Work?

PEOs provide you with comprehensive HR compliance and employee management services. They do the hiring and employee management for you while you focus on expanding the business and planning growth and business development in the region.

When a foreign entity such as yours finds it tough to make its way into a new market, PEOs come in handy. Therefore, any company, large or small, can make use of the services in any sector. 

  • Small and Medium Enterprises (SMEs) in Finland: Representing about 99% of all businesses in Finland, SMEs contribute to employment generation, value creation, and overall economic growth in Finland, especially in sectors such as technology, renewable energy, and manufacturing.

    However, without proper support, SMEs often face challenges when it comes to managing HR tasks such as payroll, compliance with Finland’s Employment Contracts Act, and adhering to collective agreements.

    In this case, SMEs can benefit from the co-employment arrangement with a PEO to focus on scaling operations while the PEO manages the HR tasks. 
  • Startups: Finland’s government funding is to thank for Finland’s startup ecosystem, one of the fastest-growing startup scenes in the world right now. Technology infrastructure, along with the STEM-focused education system, also adds up. Events such as Slush, one of the largest startup conferences globally, attract investors and entrepreneurs, further solidifying Finland’s position as a hub for innovation.

    However, expanding startups in Finland often face challenges regarding employment standards, complying with sector-specific collective agreements, and managing payroll and tax systems. Partnering with a PEO is quite ideal for startups as they can use the expertise of a PEO to manage employees, comply with the Finnish labor laws, and handle tax regulations. 
  • Multinational Corporations: Finland is home to many multinational corporations (MNCs), including telecommunications companies, machinery companies, and gaming companies.

    Such corporations can also partner with PEOs to manage a diverse workforce, all while adhering to legal labor standards. 

How To Choose the Best PEO in Finland?

Multiple platforms now offer PEO services across the world. Looking for the best PEO companies in a saturated market has become daunting. With some important considerations in mind, you can partner with the best PEO in Finland.

Compliance and Local Expertise 

Understanding collective agreements or reasonable standards offering occupational healthcare, maintaining a safe working environment, respecting the equal treatment of employees, and following data privacy regulations like GDPR when handling employee information are all critical aspects that you must keep in mind when hiring a workforce in Finland.

These aspects come under local expertise of a PEO. Before you opt for a PEO, make sure that the PEO is well aware of Finland’s tax, payroll, benefits, and employment laws. 

Services Offered 

You must only shortlist a PEO that offers the services you need. It’s wise to look into the basic services such as payroll processing, employee benefits management, and HR support. 

Besides this, if you want extra services, make sure to highlight them in the contract before signing a co-employment arrangement.

Pricing Models 

Looking into PEO pricing models in Finland helps you manage your budget. PEOs usually follow two pricing models: a flat fee per employee and a percentage of total payroll. Choose a PEO that best suits your budget. 

Customer Service 

Having a PEO with excellent customer support is a plus point when it comes to expanding your business. Before selecting a PEO, check the quality of customer service.

Look into factors like availability, separate representations for individual customers, 44/7 support, etc.

Reputation and References

As a business wanting to expand into a new country, it’s best to do your homework first. Before agreeing to a partnership with a PEO, you should do your research on its reputation.

Having a reliable PEO in Finland will save you from potential headaches later. Read reviews and ask for references to enter an arrangement with a PEO that has a reliable track record.

Achieve Economic Success in Finland With the Right PEO

Finland’s thriving economy, skilled workforce, and global leadership in technology, sustainability, and innovation make it an ideal destination for businesses seeking growth in a competitive market.

With its 100% literacy rate, world-class education system, and top ranking in digital skills, Finland provides businesses access to a rich talent pool and a strong startup ecosystem.

Businesses expanding into Finland must understand the labor laws, collective agreements, and tax regulations, which are quite complex. The absence of a statutory minimum wage and the reliance on industry-specific collective bargaining agreements also require careful planning when hiring a local workforce.

Partnering with a Professional Employer Organization (PEO) can simplify your entry into the Finnish market. A PEO handles HR functions like payroll, tax compliance, employee benefits, and recruitment, allowing you to focus on core operations such as revenue generation and business expansion strategies. 

Not sure which PEO is right for your business in Finland? Connect with our team at Remote People.

Our PEO broker service matches you with top providers who can help you expand efficiently and enter the saturated market with a highly skilled workforce. 

With the right PEO partner, you can focus on operational functions while the PEO manages HR tasks for you. Reach out today to take the first step into entering Finland’s market with the right talent by your side. 

Frequently Asked Questions

Yes, a PEO in Finland can help with the complexities of collective bargaining agreements (CBAs). Through these agreements, employers' and employees' organizations enter into a collective agreement that specifies the terms and conditions of employment. PEOs can draft such agreements aligning the employment terms with market expectations.

Any company, big or small, can partner with a PEO to hire a local workforce in Finland. It is ideal for every business or startup looking to run their HR processes smoothly while complying with Finnish laws. 

Yes, partnering with a PEO in Finland is legal. It is a common practice for companies looking to hire employees in Finland. As long as your choice of PEO complies with Finnish rules and regulations, the labor market is very open to international partnerships through such services.