To get the best help for your situation, first answer the questions on the Preliminary questions page.
Recruiting an employee
- Preliminary questions
- Plan the recruitment
- How do I know if my company can afford an employee?
- How much does a temporary agency worker cost?
- How much salary do you have to pay for someone in an apprenticeship?
- What are the costs of an unpaid trainee for the company?
- Salary costs and employer's indirect costs
- Employer's health insurance contribution
- When is the employer exempt from paying the employer's health insurance contribution?
- Social insurance contributions in unpaid traineeships
- Foreign employee's social insurance contributions
- Employment pension insurance of an employee on old-age pension
- Social insurance contributions of a foreign company
- Consider absences
- Occupational health care costs
- Other costs
- Take the induction period into account
- Need help calculating costs?
- Find a suitable employee
- Prepare for the arrival of an employee
- Recruitment checklist
Calculate the costs
How do I know if my company can afford an employee?
When planning to recruit an employee, you should calculate the actual costs incurred by the employee and their impact on profitability as accurately as possible.
How much does a temporary agency worker cost?
When considering different options, calculate whether using a temporary agency worker is more profitable than hiring a worker. When assessing the costs, note that your company also does not have to pay the associated administrative costs from payroll, for example.
The temporary agency pays the employee's salary and takes care of all its obligations as an employer, such as organising occupational health care. The company pays the temporary agency company the invoice it sends. The amount of the invoice is determined by the terms and conditions of the customer agreement.
Temporary agency workers have the right to use your company's services and common arrangements on the same terms as other employees, unless different treatment is justified. These include the use of shared recreational facilities and workplace canteens. However, your company is not obliged to provide financial support for the temporary agency workers' use of such services and facilities. These terms of employment other than those laid down in the collective agreement may be agreed between the employer and the employee.
How much salary do you have to pay for someone in an apprenticeship?
An apprentice is in an employment relationship with your company, so the costs are the same as when hiring an employee. Apprentices must be paid a salary in accordance with the collective agreement.
You can choose whether to pay the student a salary during the theoretical periods. If you do not pay, the student may, under certain conditions, receive financial benefits or students’ social benefits. For apprentices, such benefits include daily allowance, family allowance, accommodation allowance and travel allowance.
What are the costs of an unpaid trainee for the company?
In unpaid traineeships, the costs may be
Salary costs and employer's indirect costs
The salary is a compensation for the work performed, i.e. the time your employee works at the workplace or another location directed by your company. In addition, working hours often include travel and training related to work assignments as well as time spent on carrying out trade union tasks.
The law requires that a reasonable normal remuneration be paid for the performed work. The Finnish legislation does not lay down a minimum wage. The salary is based on a collective agreement.
Instead of a monthly or hourly pay, pay can also be defined as a performance-based contract wage or commission, as long as this does not fall below the wage minimum of the collective agreement.
You can use the Palkka.fi payroll calculator (in Finnish and Swedish)Opens in a new window. of the Finnish Tax Administration to calculate the wage costs, including their indirect costs. The general rule is that in addition to gross wages, it is a good idea to add 40 to 50 per cent for other costs.
Employer's health insurance contribution
The amount of the employer's health insurance contribution varies annually. The contribution percentage is the same for all employers. In 2024, it is 1.16 % of all salaries paid.
When is the employer exempt from paying the employer's health insurance contribution?
You do not have to pay the employer's health insurance contribution if you pay a maximum of 1,500 euros in salaries per year.
Employment pension insurance of an employee on old-age pension
If you hire a person on old-age pension who has already reached the highest retirement age, you do not need to pay an earnings-related employment pension insurance.
The insurance obligation ends as follows:
During the employment relationship, the employee will be absent from work for various reasons. According to the law, you must pay for that period in some situations. In addition, collective agreements and employment contracts in different sectors may contain provisions on pay, even if the law does not oblige them to do so.
For example, an employee on annual leave has a statutory right for pay. Parental leave or temporary child-care leave is only paid if agreed in the collective agreement or employment contract. If an employee falls ill, the statutory obligation to pay the salary only applies to the personal liability period.
Before recruiting an employee, find out what kind of pay obligations the employee will incur to your company during absences. In addition, you may need to acquire a substitute for the duration of the employee's absence. Therefore, take into account the indirect wages paid during absences when calculating the total cost of the employee.
Occupational health care costs
The employer must arrange at least statutory, or preventive, occupational health care for all employees.
Costs of preventive occupational health care per employee are approximately EUR 450 per year. However, the costs of occupational health care are affected by the size of the workplace. In small workplaces, the average costs are lower than in larger workplaces.
If you want to organise more comprehensive occupational health services than preventive occupational health care for your employees, the price is usually determined according to the scope of the service purchased. In addition, the amount of use affects the price. Some providers of occupational health services can also offer a fixed-price service.
Prices can vary widely, so it is a good idea to ask service providers for a quote and compare different options. Remember to also request an offer from your wellbeing services county.
Other costs affecting profitability include, but are not limited to:
Take the induction period into account
When calculating whether you can afford to hire an employee, please note that:
Please note that the company's income may be lower during the induction period.
Need help calculating costs?
For help in calculating the costs incurred by the employee or making profitability calculations, consider contacting:
Regional Enterprise AgenciesOpens in a new window. or development companiesOpens in a new window. also provide advice for calculating the costs.
A regional business mentorOpens in a new window. can support you if you have business challenges or want to develop your operations.