Henkilöstörahastojen

Henkilöstörahasto, or employee fund, is a type of profit-sharing scheme common in Finland. It is a way for companies to distribute a portion of their profits to their employees. The fund is established and managed by the company, and its purpose is to provide financial benefits to employees, often in addition to their regular salary.

Contributions to the henkilöstörahasto are typically based on the company's financial performance. When the company achieves a certain level of profitability, a predetermined percentage of the profits is allocated to the employee fund. This allocation is a voluntary commitment by the employer.

Employees do not directly contribute to the fund. Instead, they become beneficiaries of the profits shared. The distribution of the fund's assets among employees can be based on various criteria, such as length of service, salary level, or a combination of factors, as defined in the fund's rules.

The funds can be distributed to employees in several ways. These often include direct cash payments, but can also involve investments, employee stock options, or other forms of financial incentives. The specific benefits and distribution methods are determined by the company and outlined in the fund's charter.

Henkilöstörahastot are intended to motivate employees, foster a sense of ownership, and align employee interests with the company's success. They are a recognized form of employee remuneration in Finnish labor law and are subject to specific regulations regarding their establishment, management, and taxation.