Question on wages

[mrjimsfc]

When they announce something like "7,12 €/Gross" does that mean the employee is earning € 7.12 per hour and is responsible for paying all taxes and assessments from that sum? Does it also mean that if the employee works "overtime" (more than 40 hours a week) and/or Sundays he still gets only € 7.12 per hour?

[ryon_antoine]

When they announce something like "7,12 €/Gross" does that mean the employee is earning € 7.12 per hour and is responsible for paying all taxes and assessments from that sum?

I think that it means that you're earning 7.12€ per hour but you have to deduce the taxes and other stuff like that to know how much you will really earn. I don't know enough about the tax system in Finland to say if you have to pay yourself or if it is deduced from your wages and paid directly by the company. And for the overtime you have to ask if your company has a special pay rate.

[Rosamunda]

All income tax and contributions are paid by the employer directly to the tax office. Your employer will ask you for a tax card which you get from Vero based on your estimated annual earnings. The tax card will indicate your tax rate (eg 15%) and the employer will deduct this from your gross salary. He will also deduct something called TEL (social security). You can adjust your tax rate up or down during the year if necessary (eg if you do lots of overtime) otherwise you might have a shock-horror tax bill to pay just before Xmas. You then file your tax return in April (indicating any tax allowances you may have) and get an adjustment at the end of the year (if you paid too much or too little the previous year).

[mrjimsfc]

Thanks Penelope! That's pretty much what I thought it might be. If the employer also provides "free" accomodations (room), does that get taxed as well?

[blaugrau]

And I think the overtime pay would depend on the collective agreement in the industry; you could e.g. call or e-mail the relevant trade union for more precise information. Might depend on exactly how many hours of overtime you do during a weekday or weekend, could be 1,5 or 2x your regular pay.

[Rosamunda]

Yes. "Free" accomodation is a taxable benefit.

Try the vero pages (they are in English).

http://www.vero.fi/default.asp?language ... RO_ENGLISH

Then plug: taxable benefits 2008 into the search engine and you should find this:

Accommodation including electricity
§ 2

The tax values of accommodation provided by employer, with heating, in dwellings with central heating, are as follows:

(a) Helsinki metropolitan area, (Helsinki, Espoo, Kauniainen, Vantaa):

Dwelling completed Value of benefit, euros per month

before 1961: €131.00 + €8.20 per square metre,
from 1961 to 1983: €121.00 + €6.60 per square metre,
in 1984 or later: €131.00 + €7.20 per square metre.

(b) Other parts of Finland:

Dwelling completed Value of benefit, euros per month

before 1984: €86.00 + €4.90 per square metre,
from 1984 to 1991: €88.00 + €5.70 per square metre,
in 1992 or later: €90.00 + €6.70 per square metre.