Minister for International Development Pekka Haavisto on Thursday made the decision to provide the financial support.
The aid will be delivered to the Philippines via the Finnish Red Cross and Finn Church Aid and through the World Food Programme (WFP), according to the release of the ministry.
Finland's assistance will be used for things that are the most urgent after the disaster: shelter, supply of food and water, and healthcare.
"It's excellent that domestic organizations started off so quickly. It is also highly positive that Finns have wanted to help the disaster victims, and a considerable sum has been collected through private donations. However, long-term assistance will continue to be needed for people who have lost their homes, orphans and others in distress," said Haavisto.
Finland extended 350,000 euros to the fund being established by the Asian Development Bank for the reconstruction of the typhoon-ravaged areas of the Philippines.
"Reconstruction must be launched immediately, alongside humanitarian assistance. Preliminary needs estimates have already been made. In all, 3.5 million people have had to leave their homes. They must be ensured basic services and the possibility to return home as soon as possible," Haavisto said.