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Recruiting an employee

Take care of the following during the employment relationship

Notifications to the Incomes Register

The employer must notify the Incomes Register after each payment transaction:

  • information on wages and salaries paid in the pay information report
  • the employer's health insurance contributions by means of a separate employer notification

For detailed instructions, see the Tax Administration page Filing reports on wages and employer’s contributions.Opens in a new window.

The information you report is transferred from the Incomes Register to different parties, such as the Tax Administration, pension companies and the Employment Fund.

Updated: 21/11/2023

Should unpaid trainees' benefits and compensation be reported to the Incomes Register?

The traineeship post must report the fair value of the taxable benefits to the Incomes Register.

Reimbursement of travel expenses should normally be reported even if they are tax-exempt.

For instructions for reporting fringe benefits and reimbursements of expenses to the Incomes Register, see the Tax Administration's website.Opens in a new window.

Updated: 21/11/2023

When must a foreign company submit an earnings payment notification?

Even if the company does not have a permanent establishment in Finland, it must submit an earnings payment notification to the Incomes Register if the company pays a salary or wages to an the employee, who:

  • works in Finland and is either insured in Finland or resides in Finland for more than 6 months
  • works abroad but is insured in Finland.
Updated: 21/11/2023

Payments in MyTax

The employer must pay withholding tax and tax at source on employees' salaries and the employer's health insurance contributions in MyTax.

For detailed instructions, see the Tax Administration's page How to pay taxes in MyTax and check the details you need for making paymentsOpens in a new window..

Updated: 21/11/2023

Payment of social insurance contributions

Social insurance contributions are statutory, so they must be paid on time.

Your company will receive an invoice for the following insurance premiums:

  • Employment pension company: The employee's earnings-related pension contribution is based on the earnings data you have reported to the Incomes Register.
  • Employment Fund: The unemployment insurance contribution is based on earnings data you have reported to the Incomes Register.
  • Insurance company: Remember to take out accident insurance. The basis for the insurance premiums is specific to the insurance company, and the premium is based on the pay and occupational category data reported to the Incomes Register. Any group life insurance premiums are charged on the same invoice.

If the employee has other employers abroad and has an A1 certificate issued abroad, arrange the statutory social insurance policies in the country that issued the A1 certificate.

When paying, follow the instructions of the sender of the invoice, as neglecting the payment obligation might result in a large penalty fee.

Updated: 21/11/2023

Retention of foreign employee data

The employer must keep records of past and current foreign employees at the workplace and the grounds for their right to work for two years after the termination of the employment relationship. The information must also be easy to verify. You can record the data on the “Luettelo ulkomaalaisista työntekijöistä ja heidän työnteko-oikeutensa perusteista” (List of foreign workers and the grounds for their right to work)Opens in a new window. form available in Finnish on the Occupational Safety and Health Administration's website.

The elected officials at the workplace must be informed of the name of the foreigner and the applicable collective agreement.

Compliance with the obligations is supervised by the occupational safety and health authorities and the police. Neglecting the obligations might result in sanctions.

Updated: 21/11/2023

Occupational safety and health

The employer has an extensive duty of care. This means that the employer must take the necessary measures to ensure the safety and health of employees at work.

Occupational safety and health is an activity between the employer and employees that maintains:

  • workplace safety and health
  • the employees' ability to work.

Ensuring occupational safety must be systematic and based on proven good practices. Failure to do so may also result in criminal liability.

More information:

Updated: 21/11/2023

Shared responsibility on occupational safety and health in temporary agency work

When you are using temporary agency workers, your company and the temporary agency providing them are jointly responsible for their occupational safety and health.

The temporary agency is responsible for observing the provisions of the Occupational Safety and Health Act applying to employers, for providing the employees with occupational health care and for giving them general occupational safety and health guidance.

Your company is responsible for the employees’ daily occupational safety and health, for familiarising them with its content and for ensuring that work can be carried out safely.

Remember to inform the temporary agency of the professional skills requirements and special features required for the work before starting the work. In this way, the temporary agency can ensure that the employee has the necessary professional skills, experience and suitability for the work. It may also notify its own occupational health care service of the employee's working conditions.

Also notify your occupational health care provider and occupational safety and health representative of the start of temporary agency work.

Updated: 21/11/2023

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Recruitment checklist