Cut to Sunday pay premiums debated as experts weigh costs and benefits

Finnish employers’ groups are again pushing to scrap the legal requirement for double pay on Sundays, a move that would affect around 280,000 workers, particularly in healthcare, retail, and hospitality, according to a report by Yle.

Merja Kauhanen, lead researcher at the Labour Institute for Economic Research, said cutting Sunday premiums would likely have little effect on employment or economic growth. She cited Australian studies showing that similar cuts did not significantly boost jobs or opening hours in shops and restaurants. However, she warned the change would reduce earnings and spending power for many low-wage workers, potentially dampening overall demand.

Both the Finnish Entrepreneurs’ Association and the Confederation of Finnish Industries (EK) have called for an end to the mandatory Sunday pay premium. They also propose making weekdays that fall on public holidays unpaid leave or shifting them to weekends, arguing this would help businesses grow and hire more staff.

Aki Kangasharju, director of the Research Institute of the Finnish Economy (Etla), argued that productivity, not pay premiums, is Finland’s core economic challenge. He noted that productivity gains depend more on product development and management than on Sunday pay rates. Still, he acknowledged that removing the premium could allow more restaurants to open on Sundays, potentially creating jobs for low-skilled workers.

Kangasharju stressed that the impact would vary by sector and that local bargaining could offset some lost pay by raising base wages. He also distinguished between private and public services, noting that unlike hospitals or emergency services, restaurants are not obligated to operate on Sundays.

Kauhanen highlighted that Sunday work is already compensated as unsocial hours, reflecting the loss of free time with family and friends. She warned that cutting premiums could further erode the already record-low confidence of low-income earners, whose spending is vital for Finland’s fledgling economic recovery.