What are the Annual Leave regulations in Finland?

Annual leave is a crucial aspect of employment in Finland, designed to ensure that employees have the opportunity to rest and recharge. The regulations governing annual leave provide a framework for accrual, payment, and usage of leave days. Here’s what you need to know about annual leave in Finland.


1. Minimum Annual Leave Entitlement

In Finland, the minimum annual leave entitlement is structured based on the employee's length of service:

  • First Year of Employment: Employees accrue 2 days of leave per month, totaling 24 days per year.
  • From the Second Year Onward: This increases to 2.5 days per month, resulting in 30 days per year.


2. Accrual Period

Annual leave accrues over a defined period:

  • Accrual Year: The accrual period runs from April 1 to March 31 of the following year.
  • Pro-Rated Leave: For the first year of employment, leave days are pro-rated based on the months worked within that accrual year.
  • Full Entitlement: From the second year of employment onwards, employees are entitled to the full annual leave days as specified.


3. Payment of Holiday Pay

Holiday pay is an important consideration for employees taking annual leave:

  • Calculation of Holiday Pay: Holiday pay is determined by taking the average monthly salary, dividing that amount by 25, and then multiplying by the number of holiday days taken. This calculation may vary depending on specific wage items included in the employee’s salary.
  • Payment Timing: Holiday pay is typically disbursed during the annual leave period.


4. Accrued Leave and Carry Over

Employees may not use all of their accrued leave within the year:

  • Accumulation: Leave that is accrued but not used can be carried over to the next year.
  • Legal Minimum and Maximum: The law sets minimum and maximum limits for carryover, which can be adjusted based on the employer’s consent.

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