Palkankorotus: pay raise

Detailed explanation

The Finnish salary system is heavily influenced by collective agreements (TES). Most industries negotiate pay increases through centralized or sector-level bargaining between employer federations and trade unions. These negotiations typically happen every 1-3 years and result in general pay increases that apply to all employees in the sector. The agreed increases may include a general raise (yleiskorotus) applied equally to all employees and a company-specific pot (yrityskohtainen erä) distributed at the employer's discretion.

Beyond collective agreement raises, individual salary negotiations are also common. The annual development discussion (kehityskeskustelu) is a natural opportunity to discuss salary expectations with your supervisor. Finnish employers increasingly use performance-based pay elements, bonuses, and merit raises alongside the collectively agreed baseline.

Finnish salary transparency is higher than in many countries. Tax records are public information, meaning anyone can look up another person's taxable income. This transparency helps reduce wage gaps and gives employees useful benchmarks for salary negotiations. Various salary surveys and tools are also available from trade unions and employer organizations.

How it affects expats

• •Automatic increases: If a collective agreement covers your workplace, you are entitled to negotiated pay raises regardless of individual negotiations

• •Negotiation timing: The best time to negotiate individual raises is during your annual development discussion or when taking on new responsibilities

• •Market research: Use salary comparison tools from trade unions (such as the Technology Industries salary calculator) and salary surveys to understand your market value

• •Gender pay gap awareness: Finland tracks and works to address gender-based pay differences; know your rights to equal pay for equal work

• •Tax impact: Higher salary means proportionally higher taxes under Finland's progressive tax system; use a net salary calculator to understand the actual impact

Tips for salary negotiation

• Research market rates for your role, industry, and region using trade union salary data

• Document your achievements and the value you have brought to the organization

• Understand your TES to know the collectively agreed pay scales and recent increases

• Choose the right timing — development discussions, after successful projects, or when taking new responsibilities

• Be direct but professional — Finnish communication style values straightforwardness

• Consider the total package — benefits like lunch, phone, gym, and remote work have real value

Related terms

• •Palkka (Salary) — Finnish term for salary or wages

• •TES (Collective Agreement) — Industry-wide minimum employment conditions in Finland, set by collective bargaining

• •Kehityskeskustelu (Development Discussion) — The annual structured conversation between employee and manager in Finland, covering performance, goals, and career development

• •Työsopimus (Employment Contract) — Legal agreement between employee and employer in Finland defining job duties, salary, working hours, and terms