Minimum wages and other minimum terms of employment applicable to employment relationships are regulated by industry-specific collective agreements. An employer belonging to an employers’ association must apply the collective agreement to its employees on the basis of the Collective Agreements Act.
National collective agreements deemed to have a representative scope of application are considered generally applicable. An employer that is not a member of the employers’ association must at least observe the provisions of a generally applicable collective agreement when its employees perform work that fall within the scope of application of the collective agreement.
An employer and an employee may always agree on terms of employment that are better than those laid down in the collective agreement.
If there are no collective agreements in the employer’s sector, the employer and the employee can agree on the remuneration paid to the employee between themselves. However, the pay clause in the employment contract must be reasonable. Finland does not have any law on minimum wages. Furthermore, there are no provisions in the Employment Contracts Act laying down specific euro amounts for the remuneration paid for work. It is, however, stated that the remuneration must be reasonable and normal.
Guidance and supervision of labour legislation: Occupational Safety and Health Administration (Osha)
Law-drafting: Tarja Kröger, tarja.kroger(at)tem.fi