Does Finland have a minimum wage?

Finland has no statutory national minimum wage. Minimum pay is set in collective agreements, which cover 88.8% of employees (reported to the European Commission for 2023).

Do employers outside an employers’ organisation have to follow the agreement?

Yes, if the agreement has been confirmed as generally applicable. The Employment Contracts Act requires an employer to observe at least the terms of the generally applicable agreement of its sector on the work done; an employer already bound by another nationwide agreement may apply that one instead.

What pay applies if no collective agreement applies?

If no collective agreement applies and the employer and employee have not agreed on pay, the Employment Contracts Act requires a usual and reasonable wage for the work done. The Act names no amount.

Does the EU minimum wage directive apply to Finland?

Yes, Finland is an EU member state. The directive does not oblige it to introduce a statutory minimum wage where pay is set exclusively by collective agreements (Article 1(4)).

🇫🇮Minimum Wage in Finland: No Statutory Minimum

Finland has no statutory national minimum wage. Minimum pay is set in collective agreements (työehtosopimukset), and many of them are legally generally applicable (yleissitova) to every employer in their sector.^1,2

Last checked: 12 October 2026

Statutory national minimum wage: None¹
Pay floors set by: Sector collective agreements (työehtosopimukset)^1,2
Employees covered by a collective agreement: 88.8% (2023)⁷
Average gross annual salary, 2024 (Eurostat): €49,428

How pay floors work instead

An agreement becomes generally applicable when an independent board confirms that the nationwide agreement is representative in its sector. The Employment Contracts Act (chapter 2, section 7) then requires an employer to observe at least the terms of that agreement on the work done, whether or not the employer belongs to an employers’ organisation; an employer already bound by another nationwide agreement may apply that one instead.^3,4

The Ministry of Economic Affairs and Employment describes the practical test as organised employers employing at least about half of the employees in the agreement’s scope. The register of generally applicable agreements is published on Finlex.^5,6

Where no collective agreement applies and no pay has been agreed, the Employment Contracts Act (chapter 2, section 10) requires a usual and reasonable wage. It names no amount.⁴

Finland reported to the European Commission a collective bargaining coverage rate of 88.8% for 2023. The ministry’s 2024 study, based on agreements concluded in 2021 and spring 2022, gives the same figure for 2021.^5,7

The EU minimum wage directive

Finland is an EU member state. In November 2024 a tripartite working group set up by the Ministry of Economic Affairs and Employment concluded that implementing Directive (EU) 2022/2041 requires no national legislative measures apart from reporting to the Commission; the employee confederations SAK, Akava and STTK filed a dissenting opinion. A state whose collective bargaining coverage is below 80% must adopt an action plan (Article 4(2)); the Commission’s July 2026 report does not list Finland among the 18 member states below that threshold.^7,8,9

See the full minimum wage ranking across Europe →

Frequently asked questions

Does Finland have a minimum wage?: Finland has no statutory national minimum wage. Minimum pay is set in collective agreements, which cover 88.8% of employees (reported to the European Commission for 2023).
Do employers outside an employers’ organisation have to follow the agreement?: Yes, if the agreement has been confirmed as generally applicable. The Employment Contracts Act requires an employer to observe at least the terms of the generally applicable agreement of its sector on the work done; an employer already bound by another nationwide agreement may apply that one instead.
What pay applies if no collective agreement applies?: If no collective agreement applies and the employer and employee have not agreed on pay, the Employment Contracts Act requires a usual and reasonable wage for the work done. The Act names no amount.
Does the EU minimum wage directive apply to Finland?: Yes, Finland is an EU member state. The directive does not oblige it to introduce a statutory minimum wage where pay is set exclusively by collective agreements (Article 1(4)).

Sources

1.Minimum wages (earn_minw): reference metadata · Eurostat · 2026-07-31
2.Minimum wage in Finland · Eurofound · 2026-06-30
3.Työehtosopimuksen yleissitovuuden vahvistamislautakunta · Sosiaali- ja terveysministeriö (Ministry of Social Affairs and Health)
4.Työsopimuslaki 55/2001 (Employment Contracts Act), chapter 2, sections 7 and 10 · Finlex (Ministry of Justice) · 2026-05-29
5.Tutkimus: työehtosopimusten piiriin kuuluu yhä valtaosa palkansaajista · Työ- ja elinkeinoministeriö (Ministry of Economic Affairs and Employment) · 2024-02-28
6.Työehtosopimukset (register of generally applicable collective agreements) · Finlex (Ministry of Justice) · 2026-10-06
7.Report on minimum wage protection and the action plans to promote collective bargaining, COM(2026) 388 · European Commission · 2026-07-23
8.Vähimmäispalkkadirektiivin täytäntöönpano ei edellytä lakimuutoksia Suomessa · Työ- ja elinkeinoministeriö (Ministry of Economic Affairs and Employment) · 2024-11-29
9.Directive (EU) 2022/2041 on adequate minimum wages in the European Union · European Parliament and Council of the EU (EUR-Lex) · 2022-10-19

Every statement on this page cites a numbered source and was read at that source on the date shown. This page gives information, not advice. Last checked: 12 October 2026.