Frequently asked questions about salary

The Employment Contracts Act does not contain any provisions on minimum wages. In principle, therefore, salaries can be agreed relatively freely. However, salaries must be at least normal and reasonable, but no specific amounts are specified in the Act.
 
Many collective agreements stipulate minimum salaries for different jobs. If your employer is obliged to comply with a collective agreement, they cannot pay you less than the minimum wage.

The amount of the salary and how it is determined should always be clearly and precisely agreed upon in the employment contract. When agreeing on a new job, it is a good idea to find out the general salary level in the field and try to negotiate a salary that is at least at that level. Experience and education often affect the amount of the salary.

General increases are not based on legislation, but are agreed upon in collective agreements.

Your employer may be obliged to comply with a collective agreement either on the basis of normal applicability or general applicability. General applicability means that employers operating in certain sectors must comply with the collective agreement, even if the employer is not a member of the employers’ organization that signed the collective agreement.

On the other hand, there are jobs and sectors where no applicable collective agreement exists. In such cases, employees are not entitled to general increases.

However, nothing prevents an employer from paying general increases, even if there is no direct obligation to do so. It is often the case that employers want to increase their employees’ wages in line with the so-called general trend in order to maintain the purchasing power of their employees’ wages.

In so-called non-contractual sectors, it is advisable for employees to agree in their employment contract that their salary will be increased in line with the general increases specified in a particular collective agreement, even if the collective agreement is not otherwise applied.

According to the Employment Contracts Act, wages must be paid on the last day of the pay period, unless otherwise agreed. When an employment relationship ends, the pay period also ends. Therefore, when an employment relationship ends, the final wages must be paid on the last day of the employment relationship, according to the law.

Please note, however, that the date of payment is determined as above only if no other agreement has been made. Often, the employment contract or collective agreement may stipulate, for example, that the final salary is paid on the company’s normal payday following the termination of the employment relationship. So start by checking these.

If your final salary is not paid on time, you can claim waiting period pay from your employer for the waiting days. Waiting period pay is paid for a maximum of six days. In addition, you are entitled to interest on arrears in accordance with the Interest Act.

You are entitled to receive a pay slip with each salary payment. The pay slip must show what you have earned during the pay period. The statement must also show the amount of your salary and the basis for its calculation, such as the number of hours worked and your hourly or monthly wage, as well as the amount of various salary supplements, such as evening supplements, and the number of hours worked that entitle you to them.

If you have not received a pay slip, ask your employer for one. It is advisable to make the request in writing. If your employer does not provide you with a pay slip despite your request, you can contact the occupational safety and health authority. They can contact your employer. Failure to provide a pay slip may be a breach of the Employment Contracts Act.

Yes, you do. Even if the mistake was not yours, your employer has the right to recover any excess or unjustified wages paid to you. The employer can deduct the overpaid salary from your next salary, for example. However, the Employment Contracts Act limits the employer’s right of deduction, and the employee must be left with a protected portion in accordance with the Enforcement Act.
 
If your employer informs you that you have been overpaid, we recommend that you request a written explanation and calculation. This will allow you to check whether an overpayment has occurred. It is also advisable to agree on a reasonable repayment schedule with your employer.

According to the Employment Contracts Act, you are entitled to sick pay if you are unable to work due to illness or accident. You must notify your employer of your incapacity for work in accordance with the guidelines followed at your workplace. Your employer may require you to submit a doctor’s certificate.

According to the Employment Contracts Act, sick pay is paid for the day you fall ill and the following nine working days, insofar as these days would have been your working days. If your employment relationship has lasted less than one month at the time of the onset of incapacity for work, 50% of your salary will be paid as sick pay. If your sick leave continues longer than your employer is obliged to pay your salary, you may be entitled to sickness allowance paid by Kela.

If you have a zero-hour contract or a variable working hours contract, you are entitled to sick pay if your shift during the period of illness is marked in the work schedule, it has been agreed otherwise, or it can be considered clear under the circumstances that you would have been at work if you had not fallen ill.  

You are not entitled to sick pay if you have caused your incapacity for work through deliberate or grossly negligent conduct.

Collective agreements often stipulate longer periods of sick pay. The provisions may also differ from the provisions of the law in other respects. Therefore, always check your collective agreement.