Finland’s sick leave law provides sickness allowance through Kela (the Social Insurance Institution) after a 9-day waiting period, while employers are responsible for paying wages during the first 9 days under the Employment Contracts Act (Työsopimuslaki). The system balances employer and state responsibility across the full absence period.
Key Takeaways
- The employer pays wages for the first 9 days (including 1 unpaid waiting day under the old system, now reformed)
- Kela pays sickness allowance for days 10–approximately 300+ at roughly 70% of earnings
- A medical certificate is required from day 9 (or earlier if the absence exceeds 3 days at many workplaces)
- Employers may reclaim up to 40 days of wages from Kela for the employer’s waiting period
- Collective agreements often require the employer to pay full salary during the waiting period
Finland’s Sick Leave Entitlement
Finland’s sick leave system is built on the Employment Contracts Act (2001/55) and the Health Insurance Act (1326/2010). When an employee falls ill, the employer pays wages during the first 9 days, and Kela pays sickness allowance from day 10 onward.
The key complexity is that the first 7 days of the employer period include days when the employee receives no sickness allowance — they are effectively unpaid from Kela’s perspective, but the employer may still pay wages under the Employment Contracts Act or collective agreement. From day 10, Kela’s sickness allowance kicks in, and the employer may be able to reclaim some of the wages paid during the waiting period.
Collective agreements frequently override the statutory minimums, requiring full pay during the entire waiting period and sometimes beyond.
Who Pays for Sick Leave?
| Period | Pay Rate | Who Pays |
|---|---|---|
| Days 1–9 (employer waiting period) | Wages per contract/collective agreement | Employer |
| Days 10–300+ | Sickness allowance from Kela | Kela |
| Reimbursement for days 1–40 | Reimbursable portion of employer wages | Kela reimburses employer |
The statutory sickness allowance from Kela covers approximately 70% of the employee’s daily earnings subject to a maximum. The employer’s reimbursement right from Kela covers wages paid during the waiting period, but is capped.
Sick Leave Pay Rates
| Period | Pay Rate | Source |
|---|---|---|
| Employer waiting period (days 1–9) | Per employment contract (often 100%) | Employment Contracts Act |
| Kela sickness allowance (days 10+) | 70% of daily earnings (max approx. €55.59/day in 2026) | Health Insurance Act |
| Employer reimbursement | Wages paid for days 1–40, up to sickness allowance amount | Kela |
The maximum daily sickness allowance from Kela is approximately €55.59 per day (70% of the daily allowance ceiling). This is significantly lower than most employees’ actual daily earnings, which is why collective agreements commonly require the employer to top up the difference.
Medical Certificate Requirements
Under Finnish law, a medical certificate (lääkärinlausunto) is generally required from day 9 of illness. However, many collective agreements require a certificate earlier — often from day 3 or day 4.
The employer and employee can agree on the specific terms in the employment contract. If no agreement exists, the statutory default applies. For absences exceeding 30 days, Kela may request additional medical documentation.
How to Calculate Sick Pay in Finland
Example: An employee earning €4,000/month (approx. €133/day) is off sick for 25 working days.
- Employer waiting period (9 calendar days): 7 working days × €133 = €931
- Kela sickness allowance (days 10–25): 16 days × €55.59 = €889.44
- Total employee receives: €931 (employer) + €889.44 (Kela) = €1,820.44
- Potential employer reimbursement: Kela reimburses the employer for days 1–9 at the sickness allowance rate (€55.59 × 7 working days = €389.13)
The gap between the employee’s normal earnings and the combined employer/Kela payment is where collective agreement top-ups become important.
Employer Reimbursement from Kela
Employers can reclaim wages paid during the waiting period from Kela, but the reimbursement is capped:
- Reimbursement covers up to 40 days of the employer’s waiting period costs
- The amount is calculated at the sickness allowance rate, not the actual salary paid
- The employer must file the reimbursement claim with Kela within 2 months of the end of the waiting period
This means the employer bears the difference between actual salary and Kela’s sickness allowance rate during the waiting period.
Employer Obligations and Penalties
Finnish employers must:
- Pay wages during the waiting period as required by the employment contract or collective agreement
- Report the sick leave to Kela and file reimbursement claims within 2 months
- Cooperate in rehabilitation and return-to-work planning
- Maintain medical documentation confidentially and securely
- Follow the Occupational Safety and Health Act requirements for workplace health management
Non-compliance can result in sanctions from the Regional State Administrative Agency (AVI) and potential liability in employment disputes.
Comparison With Other Countries
| Country | Sick Days | Pay | Certificate Required |
|---|---|---|---|
| Finland | 9 days employer + Kela from day 10 | 100% employer / 70% Kela | Day 9 (often day 3–4 per agreement) |
| UK | 28 weeks SSP | £116.75/week | Day 7 |
| Australia | 10 days personal/carer’s leave | Full rate | 2+ consecutive days |
| US | Varies by state | Varies | Employer policy |
FAQ
What is the difference between the statutory waiting period and the collective agreement?
The Employment Contracts Act sets a minimum of 9 days for the employer’s waiting period, but many collective agreements extend this or require full pay during the entire period. Employees covered by collective agreements often receive more generous terms than the statutory minimum. Always check the applicable agreement.
Can Kela sickness allowance be extended beyond the initial period?
Yes. Kela can extend sickness allowance beyond the initial 300+ days for employees who have a reasonable prospect of recovery. The extension is subject to ongoing medical assessment. After the sickness allowance period, the employee may transition to partial sickness allowance or rehabilitation allowance.
How does the reimbursement process work?
The employer files a claim with Kela, providing the sick leave certificate and proof of wages paid. Kela calculates the reimbursement at the sickness allowance rate. The claim must be filed within 2 months of the end of the waiting period. Late claims may be rejected.
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