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The minimum wage is separately defined for each sector in collective agreements. Employers who are members of an employers’ organisation that has negotiated a collective agreement shall comply with the collective agreement made by their organisation for the sector.
Employers who are not members of an employers’ organisation that has negotiated a collective agreement are obliged to comply with the sector’s universally applicable collective agreement. The benefits set by the employer may not be more disadvantageous to the employee than those set out in the universally applicable collective agreement. More detailed information on universally binding collective agreements is provided by the Occupational Safety and Health Administration.
Minimum wage in the absence of a collective agreement
If the employer is not a member of an employers’ organisation that has negotiated a collective agreement and there is no universally applicable collective agreement in the sector, the Employment Contracts Act (Chapter 2, Section 10) shall apply. The Employment Contracts Act states that if neither a collective agreement binding under the Collective Agreements Act nor a generally applicable collective agreement is applicable to an employment relationship, and the employer and the employee have not agreed on the remuneration to be paid for the work, the employee shall be paid a reasonable normal remuneration for the work performed.
If there is a collective agreement in the sector other than a universally applicable collective agreement, the wages specified in this agreement can be considered normal and reasonable. If there are no collective agreements in the sector, normal and reasonable pay may be based, for instance, on the salary recommendations made by organisations in the sector. If there are no such recommendations, it is recommended that the remuneration for full-time work should be, at minimum, enough to fulfil the right to daily allowance under the employment condition of the Act on Unemployment Benefits (Työttömyysturvalaki, 1290/2002).
