henkilöstörahastot

Henkilöstörahastot, or personnel funds, are a Finnish system designed to provide employees with a share of the company's profits. These funds are established by an employer and are intended to benefit all or a defined group of employees. Contributions to the fund are typically derived from the company's profits, though other sources may also be used.

The primary purpose of a henkilöstörahasto is to act as a form of incentive and reward for employees, fostering a sense of ownership and shared success. Funds are managed by a separate entity, often a foundation, with its own board of directors. Employees can receive distributions from the fund in various ways, including cash payments, shares in the company, or other benefits.

The establishment and operation of a henkilöstörahasto are governed by specific Finnish legislation. This legislation outlines the conditions for setting up a fund, determining eligibility, making contributions, and distributing benefits. Tax implications are also a significant aspect, with specific rules applying to both the employer's contributions and the employee's distributions. These funds can also be used for employee training, welfare activities, or other purposes beneficial to the staff. The overall aim is to create a more equitable distribution of company success and to enhance employee motivation and loyalty.