News from Finland in English

Finnish Government alters proposed cuts to Employment Benefits

Earlier in September the finnish government announced some cuts to the benefits of the employees. The cuts were well received and they were criticized of affecting low-income disproportionally much. There was even a demonstration held in the country on September 18th, drawing many public services and transport to a halt.

Today the government announced alterations to the cuts. The cuts to sunday work and overtime premiums was replaced by a cut of 30 day to the annual holiday bonus. The new set of changes to benefits are as follows:

  • Two bank holidays (Helatorstai and Loppiainen) are changed to unpaid, without alteration to yearly working time. The days will remain bank holidays, but employees will need to work the extra 15/16 hours during the course of the year. For people working on these days they will no longer carry the bonus of double pay.
  • The first sickleave day will be unpaid and the next eight will yield 80% of regular working pay. After that it will continue as 100%, as currently.
  • The maximum yearly paid vacation is set to six weeks. This affects only holidays in the public sector and select private industries.
  • Changes to the yearly holiday bonus (lomaraha / Thirteenth salary) cut them by 30% in most industries.

In addition to this there are several changes affecting employers, such as a cut in social security payments.

These cuts are governed by law to be compulsory for a period of three years.

Written by Janita on Monday September 28, 2015
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