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Home » A new two-year collective agreement for the IT service sector employees

A new two-year collective agreement for the IT service sector employees

A new two-year collective agreement for the IT service sector employees has been reached, as the Technology Industry Employers of Finland and the Federation of Professional and Managerial Staff YTN and the Association of IT service sector Employees have approved the negotiation result. The agreement may be terminated by either party after the first year.

According to our assessment, the new collective agreement of the IT service sector is not generally binding, and thus the collective agreement will not bind companies that have not joined Technology Industry Employers of Finland.

Local Salary Settlement Preferred

The salary settlement shall be negotiated locally, while taking into account the situation of the company. If a local salary settlement is not reached, salary adjustments will be carried out as the collective agreement provides.

Unless otherwise locally agreed, the salaries will be increased as follows: 

The salary increases are a total of 6.0 percent over the two years, and in addition, in the first year of the contract, employees will be paid a lump sum payment of 1.0 percent cost impact. 

The lump sum will be paid on the 1 March 2023 or 1 May 2023 or on the next regular pay day after those dates, unless otherwise agreed with the employee.

In addition to the lump sum payment, the employer implements, in accordance with the company’s pay policy, a salary adjustment having a cost impact of 3.5 %. When allocating salary increases, the employer must ensure that each employee’s salary, including fringe benefits, is increased by at least 3.0 %. 

In the second contract year, no later than February 1, 2024 or the beginning of the salary payment period that starts after that, the employer implements a salary adjustment with a cost impact of 2.5 %. When allocating salary increases, the employer must ensure that each employee’s salary, including fringe benefits, is increased by at least 1.3 %. 

New Alternative Salary Model and Other Significant Text Changes

The new collective agreement includes several text changes.

The new collective agreement introduces a new alternative salary model that can be used to determine the employees’ salaries. In the future, the employer can decide that instead of the competence classifications of the collective agreement, the salaries are determined by the pay policy that is not bound to the table of minimum salaries.

The negotiation periods regarding temporary lay-offs (expected duration maximum 90 days) were shortened from 14 days to 7 days. In addition, the lay-off notice period will be 7 days (previous 14 days).

As part of the whole set of text issues, it was also agreed that the parents’ total paid family leave will increase by about three weeks.

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