Workers’ Compensation Insurance in Finland
Workers’ compensation insurance is a mandatory business insurance for all employers in Finland. It covers your employees in case of accidents at work – or while commuting to or from the workplace.
Workers’ compensation insurance protects your employees’ income in case of workplace accidents, commuting-related injuries, or occupational illnesses.
In Finland, this insurance is mandatory under the Workers’ Compensation Act, which applies to all employers. Beyond financial compensation, the policy also covers rehabilitation services designed to support employees’ recovery and long-term ability to work. Rehabilitation is always tailored to individual needs and assessed case by case.
Table-Based Pricing for Smaller Employers
Special Fee-Based Pricing for Larger Organisations
Voluntary Transition to Fee-Based Pricing
In Finland, employers can voluntarily switch from standard table-based pricing to a fee-based model – depending on the insurance company’s eligibility criteria.
Workers’ compensation insurance premiums include treatment costs, risk-related fees, and mandatory statutory contributions. Approximately 80% of the total premium consists of risk-based elements that cover the insurer’s compensation responsibilities, including large claims and long-term payments. The remaining 20% consists of statutory supplements, which are identical across all insurers.
A qualified insurance broker can help assess whether fee-based pricing is suitable for your organisation – based on your company’s size, claims history and safety performance.
FAQ
Yes. All employers in Finland are legally required to take out workers’ compensation insurance for their employees, even for short-term or part-time contracts. The coverage applies to accidents at work, commuting injuries, and occupational illnesses.
It covers medical treatment, loss of income, rehabilitation, and other related costs resulting from work-related injuries or illnesses. In certain cases, it also includes long-term support and compensation for permanent disability or death.
Pricing is typically based on your company’s annual payroll and the risk classification of your employees’ work. Larger companies may qualify for a fee-based pricing model that also considers past claims and safety performance.
Yes. A local insurance broker can help international organisations navigate Finnish legal requirements, select the right insurer, and optimise coverage and cost – especially if your business is new to the Finnish market.
Table-based pricing uses a fixed rate based on payroll and risk class. Fee-based pricing allows for more flexibility and reflects your company’s actual claims history and risk management. It can reduce premiums for companies with strong safety records.
Yes. Roughly 20% of the total premium consists of statutory supplements, which are standardised across all insurance companies in Finland. The remaining portion may vary depending on your insurer and risk profile.