Generate/ERILOGO1.gif About ERI Disclaimer

Finland - Compensation & Benefit Legislation

CAPITAL

Helsinki

 

CLIMATE

Cold temperate. Potentially subarctic but comparatively mild because of the moderating influence of the North Atlantic Current, Baltic Sea and more than 60,000 lakes.

 

LANGUAGES

Finnish (official, 93.4%), Swedish (official, 5.9%) and small Lapp- and Russian-speaking minorities.

 

LEGAL SYSTEM

Civil law system is based on Swedish law. The Supreme Court may request legislative interpretation or modification of laws. Finland accepts compulsory ICJ jurisdiction, with reservations.

 

CURRENCY

Euros (1 USD = 1.07090 EUR as of June 1, 2002)

 

FINLAND - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

FINLAND - EMBASSY/CONSULATES

U. S. Embassy at Helsinki

Itainen Puistotie 14B

FIN-00140

APO AE 09723

Helsinki, Finland

Telephone: [358] (9) 171 931

Fax: [358] (9) 174 681

http://www.usembassy.fi/

 

Embassy of Finland at Washington D.C.

3301 Massachusetts Avenue N.W.

Washington D.C. 20008

Telephone: (202) 298-5800

Fax: (202) 298-6030

E-mail: info@finland.org

http://www.finland.org/

 

FINLAND - HOLIDAYS

 

FINLAND - LEAVE

After reforms in 1981, the minimum annual leave is five weeks a year for all employees with one or more years service. If an employee is new to a job, he or she will be entitled to four weeks. Some collective agreements grant up to six weeks.

 

Study leave is 9 months per 3-year period. This includes training for trade union activities. Employers shall determine whether leave is paid or unpaid.

 

FINLAND - MINIMUM AGE

The law prohibits forced and bonded labor by children. Youths under 16 years of age cannot work more than 6 hours a day or at night, and education is compulsory for children from 7 to 16 years of age. The Labor Ministry enforces child labor regulations. There are virtually no complaints of exploitation of children in the work force.

 

FINLAND - MINIMUM REMUNERATION

There is no legislated minimum wage, but the law requires all employers--including nonunionized ones--to meet the minimum wages agreed to in collective bargaining agreements in the respective industrial sector. These minimum wages generally afford a decent standard of living for workers and their families.

 

(Section 6.e. Acceptable Conditions of Work, Finland - Report of Human Rights Practices, 2001, U.S. Department of State.)

 

FINLAND - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

FINLAND - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

a.      The Right of Association

 

The Constitution provides for the rights of trade unions to organize, to assemble peacefully, and to strike, and the Government generally respects these provisions. Approximately 79 percent of the work force is organized. All unions are independent of the Government and political parties.

 

The law grants public sector employees the right to strike, with some exceptions for employees who provide essential services. During the year, there were a number of strikes. Most strikes were brief and occurred in the industrial sector. From March until mid-August, there was a public physicians' strike. It was the longest strike in a number of years.

 

Trade unions freely affiliate with international bodies.

 

b.      The Right to Organize and Bargain Collectively

 

The law provides for the right to organize and bargain collectively. Collective bargaining agreements usually are based on income policy agreements between employee and employer central organizations and the Government.

 

The law protects workers against antiunion discrimination. Complaint resolution is governed by collective bargaining agreements as well as labor law, both of which are enforced adequately.

 

There are no export processing zones.

 

c.      Prohibition of Forced or Compulsory Labor

 

The Constitution prohibits forced or compulsory labor; however, there were reports of trafficking in persons (see Section 6.f.).

 

The law prohibits forced and bonded labor by children; however, there were reports of trafficking in children (see Section 6.f.).

 

d.      Status of Child Labor Practices and Minimum Age for Employment

 

The law prohibits youths under 16 years of age from working more than 6 hours a day or at night. The Labor Ministry enforces child labor regulations; there were virtually no complaints of the exploitation of children in the work force. The Government adheres to the standards of ILO Convention 182 on the worst forms of child labor.

 

The law prohibits forced and bonded labor by children; however, there were reports of trafficking in children (see Section 6.c. and 6.f.).
 

e.      Acceptable Conditions of Work

 

There is no legislated minimum wage, but the law requires all employers--including nonunionized ones--to meet the minimum wages agreed to in collective bargaining agreements in each industrial sector. These minimum wages generally provide a decent standard of living for a worker and family.

 

The legal workweek consists of 5 days not exceeding 40 hours. Employees working shifts or during the weekend are entitled to a 24-hour rest period during the week. The law is enforced effectively as a minimum, and many workers enjoy stronger benefits through effectively enforced collective bargaining agreements.

 

The Government sets occupational health and safety standards, and the Labor Ministry effectively enforces them. Workers can refuse dangerous work situations without risk of penalty.

 

f.      Trafficking in Persons

 

The law does not explicitly prohibit trafficking in persons, although trafficking can be prosecuted under other statutes; there were reports that trafficking occurred. The country is a destination and transit country for trafficking in persons. According to the Government, most trafficking involves women and girls for prostitution from Russia and Estonia.

 

During the year, the Government and local NGO's made efforts to prevent trafficking. The Government has a leading role in promoting the EU's antitrafficking  "STOP" project, which is an effort to create a multinational network to monitor, analyze, and combat trafficking in persons.

 

While the law does not specifically prohibit trafficking in persons, traffickers can be prosecuted under other laws that prohibit slavery, the exploitation of prostitution by means of coercion or fraud, pimping and other related activities, and arranging illegal entries. There have been few cases in which the authorities prosecuted traffickers; however, according to the Government, the trafficker is often abroad and therefore difficult to prosecute.

 

The law includes provisions for witness protection, although no specific program initiates and regulates such policies. Legal council is provided to victims as well as medical care and psychological counseling. The Government participates in the funding of shelters, which are generally municipally run.

 

FINLAND - STANDARD WORKWEEK

The legal workweek consists of 5 days not exceeding 40 hours. Employees working shifts or during the weekend are entitled to a 24-hour rest period during the week. The law is enforced effectively as a minimum, and many workers enjoy stronger benefits through effectively enforced collective bargaining agreements.

 

(Section 6.e. Acceptable Conditions of Work, Finland - Report of Human Rights Practices, 2001, U.S. Department of State.)

 

FINLAND - SOCIAL SECURITY

Social Security Office of International Programs:

 

http://www.ssa.gov/SSA_Home.html

 

FINLAND - TOTALIZATION AGREEMENT WITH U.S.

Effective Date of Agreement: November 1, 1992.

 

Coverage and Social Security Taxes: 

 

For employees sent by a Finnish employer to work in the U.S. for five years or less, taxes and coverage fall to Finland. If the employee is sent to work in the U.S. for more than five years, was hired in the U.S., or works for a non-Finnish employer in the U.S., taxes and coverage fall to the U.S.

 

Certificate of Coverage Request: 

 

To establish exemption from coverage under the U.S. Social Security system, the employer in Finland must request a certificate of coverage from Finland at this address:

 

Central Pension Security Institute

Section for Foreign Pension Affairs

P.O. Box 11

SF-00521 Helsinki

FINLAND

 

The same information required for a certificate of coverage from the U.S. is needed except that the Finnish Social Security number should be shown rather than the U.S. number.

 

Minimum Credits Needed: 

 

Finland provides old-age, survivors, and disability through two separate programs. The National Pension Scheme (NPS) pays flat rate benefits to Finnish nationals living in Finland. People who are not Finnish nationals may qualify for these benefits if they reside in Finland for five continuous years immediately before entitlement. The Employment Pension Scheme (EPS) pays benefits based on the workers' earnings level and total years of work. A person can qualify for the benefits with a minimum of one month's EPS coverage. Work credits under the U.S. system will not be counted when determining eligibility for EPS benefits.

 

Summary of Social Security Benefits: 

 

Under the NPS workers can receive full benefits at age 65 or reduced pension at age 60. Individuals residing in Finland who are not Finnish nationals must have at lest five year of continuous residence in Finland immediately before entitlement. Under the EPS workers can receive full benefits at age 65 or reduced pensions at age 60. At least on month of covered work is required. The NPS provides disability benefits for people 16-64 if their impairment provides their regular occupation. The five-year residency requirements must met. The EPS provides benefits to individuals age 15-64 if the impairment is expected to last at least one year and there is at least 40 percent loss of work capability. At least one month of covered work is required. There is no provision for family benefits but a supplement to the NPS may be paid to a dependent spouse or children under age 16. Survivor benefits are payable to a widow(er) who resides in Finland, and if not a Finnish national, either the widow(er) or deceased must have resided in Finland at least five continuous years immediately before the date of death.

 

Additional Information: 

 

For specific information on Finland's Social Security program, visit a local Finnish Social Security office in Finland. For more information on the National Pension Scheme, write to:

 

Social Insurance Institution

P.O. Box 82

SF-00601 Helsinki

FINLAND

 

For more information on the Employment Pension Scheme, write to:

 

Central Pension Security

Institute

P.O. Box 11

SF-00521 Helsinki

 

See Totalization Agreements