Minimum wages in Finland. Posting to Finland in the construction industry. Salary of posted construction workers in the context of the latest changes to the construction industry’s collective bargaining agreement.
Minimum salary rates in Finland’s construction industry changed in May 2024 and will be binding till the end of February 2025. The collective agreement also requires foreign employers to pay posted workers the same allowances as Finnish companies.
Collective agreement for construction sector
Minimum wages in Finland. The last changes of the collective agreement negotiated by the Rakennusliitto – Finnish Construction Sector Trade Union went into effect in May 2024. In terms of minimum salary, each of the 8 industry groups (e.g., infrastructure, road construction, painting, construction material production) has separate grade categories, depending on education and work experience.
As of May 2024, the rate for general construction workers is EUR 11.94/hour for new employees. The rate for highly experienced professionals is EUR 18.90/hour.
When determining pay, it is important to remember that when assigning an employee to lower categories, it is necessary to justify the decision by showing e.g short period of work experience. Each group also has a separate set of allowances defined, for example:
- personal pay component
- work in harsh weather conditions,
- compensation for the use of own basic tools,
- allowance related to the maintenance and cleaning of protective clothes
In order to guarantee equal competition in the construction sector, foreign companies posting workers to Finland must also pay the public holiday allowance (7.7%) and holiday bonus (18.5%).
Minimum wages in Finland. Salary and the per diem allowance.
Another of the mandatory components of payment is a daily allowance 51 euros. In its case, the regulations allow this amount to be reduced by the equivalent of the benefits received by the employee, although both the type and cost of such benefits are also regulated.
Expenses incurred for accommodation and transportation of posted employees cannot be deducted. Under Finnish labor law, these are recorded as compulsory benefits that are not part of the salary. In the case of statutory deductions, note that they should not exceed the amount of 1/3 of the minimum hourly wage.
According to the labour regulations, each deduction and allowance must be itemized on the pay slip as a separate item. The slips, in turn, are part of the mandatory documentation, kept on site by the company representative indicated in the documents. The employer is required to make the documentation available whenever requested by the occupational health and safety inspection, the tax office and trade unions.
If you would like more information on the conditions and regulations in Finland, please do not hesitate to contact us. We offer professional assistance and many years of experience in formalities related to posting employees to Finland. We encourage you to make use of our services.
