Work and Wages

This page was last updated on: 2021-09-21

Minimum Wage

Minimum wage in Finland is not determined by law and there is no statutory minimum pay that an employer is required to observe. Collective agreements provide for the minimum level of wages and other terms and conditions of employment. The Collective Agreements signed between employer and employee organizations at national level are extended to the whole sector "ex lege". These collective agreements are generally binding. Employment Contracts Act provides that workers are entitled to a normal and reasonable wage for the work performed if employer and employee have not agreed on the remuneration to be paid for work and no such collective bargaining agreement is applicable to the employment relationship.

Source: §10, Chapter 2, of the Employment Contracts Act, 2001 (last amended in 2015)

Regular Pay

In accordance with section 4, chapter 2 of the Employment Contracts Act, an employer has to provide written employment particulars which include among other things the "grounds for determination of pay and other remuneration as well as the pay period".
The above act requires that pay should be paid on the last day of the pay period unless otherwise agreed. If the basis for pay determination is shorter than a week, payment must be made at least twice a month. In other cases, the payment can be made once a month, i.e., in usual cases, pay period would be one month. If pay is determined on performance basis, the pay period should not exceed two weeks unless the performance based pay is paid together with a monthly salary. Remuneration may be paid either in cash or through some bank account however it must be paid or be withdrawable on its due date.

Source: §13 & 16, Chapter 2, Employment Contracts Act

Regulations on Work and Wages

  • Työsopimuslaki, 2001 / Employment Contracts Act, 2001
  • Työaikalaki, 1996 / Working Hours Act, 1996

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