With an unemployment rate of less than 10% in January 2021 and the highest-ranking life satisfaction indicator in the OECD Better Life Index, Finland is amongst the most attractive countries in Europe when it comes to employment and investment.
So the next question, if you decide to move there is: What is the minimum salary in Finland? And what about the average salary in 2021? This is our topic today!
Knowing the minimum salary that you can get in a country is most probably one of your first concerns before deciding whether you should become an employee there or not, as it reflects the lowest value you are guaranteed to be paid for your work.
The average salary, on the other hand, has a great importance in offering you a great picture of your potential living standards and average income.
So let’s find out what you should expect by checking out the data below!
What is the minimum salary in Finland in 2021?
Like in most countries throughout Scandinavia, in Finland there isn’t any minimum salary law-regulated for the entire country; but you can expect to get a net monthly salary of around €1,500.
Generally, these minimum rates are negotiated and agreed through collective bargaining, by workers’ unions, who set the minimum salaries depending on the economic sector and several other factors, including level of studies, experience and time spent in the company.
In Helsinki, for example, unless collective agreements state otherwise, minimum salaries can go as low as €1,210.
You should also note that these minimum salaries may vary significantly between the poorer and the richer regions of Finland.
In fact, a considerable gap can be observed between the richest and the poorest classes of population from Finland, as the top 20% is paid around four times as much as the bottom 20% – according to OECD.
Consequently, minimum salaries in Helsinki, for example, which is known as the city with the highest salaries in Finland, will definitely be higher than those in other cities.
And since we’re here, why not think about leisure as well and check out our recommended things to do in Helsinki?
But here, you should also consider the fact that not only the salaries are higher in Helsinki, but the cost of living too.
Plus, despite this income difference, Finland is considered one of the countries with the lowest poverty rates in Europe, so even though the minimum salary may be slightly lower in other cities than in Helsinki, the living standards will still remain at top levels and, therefore, the minimum net salary of around €1,500 will be enough to satisfy all your basic needs for a decent life.
What is the average salary in Finland?
As for the average salary in Finland in 2021, we’re talking about a net value of €2,550. This value is considerably higher than the minimum amount an employee can get paid here for a full-time program.
Taking a few minutes to check the statistics, you will see that the latest value registered on Eurostat regarding the average monthly salary in Finland shows €3,360 in 2018, gross earnings – which, after taking out the tax, becomes an average monthly net salary of around €2,780.
What this shows is that rates have remained constant during the last three years, with slight fluctuations that haven’t affected the economy of Finland or the population’s lifestyle too much, not even within the recent sanitary crisis.
Following the trend of the wage growth, again, we get the confirmation that the average salaries have been constant during the last few years, as the growth percent has barely decreased by 0.5% by the end of 2020 and slighty increased by 0.2% by the beginning of 2021.
So, if you’re looking for a labor market that can offer you security and constant rates, Finland may be amongst your best options. The average salary is not amongst the highest in Europe, but is still high and able to ensure great living standards.
Summing-up everything in this article, the minimum salary in Finland is not legally regulated for 2021, neither has it been for the last years. This is the same as in Sweden and Norway and apparently a thing of countries in the Scandinavia region.
The minimum earnings are negotiated and agreed through collective bargaining with the workers’ unions, who set these rates based on economic sectors and other important aspects to consider.
As an orientative value, minimum salaries that can be earned in Finland are around €1,500 and can go to as low as €1,210 in Helsinki unless collective negotiations and agreements with workers’ unions establish other rates.
But despite these minimum rates set by unions, the average salary in Finland goes a lot higher, to a net value of €2,550.
Furthermore, even though salaries are not amongst the highest in Europe, Finland still remains a very attractive country to move to for new work opportunities and better living standards, especially if you’re moving there with family and are also interested about other aspects such as education, safety, or life satisfaction.
In the education sector, for example, 88% of the adults have completed upper secondary education, and Finland is the highest ranking country in the OECD Better Life Index regarding this dimension and the quality of education.
Life satisfaction also gets a maximum value from the population of Finland, with the highest indicator in the statistics.
To these, the high levels of safety, work-life balance, health, community and environment, along with an unemployment rate less than 1.3% during the last two years and the decent net average salary, place Finland amongst one of the most economically attractive countries where you can move.
What do you think about it? Would you choose Finland, should you decide to move your job, family and life to another country, or go for another Northern-European country with some of the highest minimum and average salaries such as Sweden or Iceland?
Feel free to share your thoughts in the comments section below, and to let us know if you’ve got new updates on the salaries in Finland!