Finnish Social Security
Our tax guide for freelance contractors working in Finland
Employers’ social security charges are levied on a percentage of gross wages and salaries: contributions for old-age pension and health insurance vary from 2.771%, 4.971% or 5.871% (no ceiling) depending on the amount of depreciation deduction taken and the amount of salaries paid during the last year for which the income tax assessment is final. Employers also pay pension contributions of an average of 16.8%, unemployment insurance of 0.7% on the first EUR 1’686’000 and 2.9% on the excess, and approximately 1% of the employees’ gross earnings for accidental injury insurance.
Employees’ contributions are as follows: a variable health insurance is calculated according to the municipal income tax charges and there are no ceilings. For 2008, the health insurance contribution is 1.91% of which 1.24% is for health care and 0.67% for daily allowance with only the daily allowance being deductible for income tax purposes. A pension contribution of 4.1% (or 5.2% if the employee is aged 53 or more) and unemployment insurance of 0.34% are also applicable and both are deductible before tax.