Pension accrual

As an employee, pension will be accrued from any work, as long as your salary exceeds 58.27 euros per month in 2018.

Household employment and work related to this, for example operating as a baby-sitter, will also contribute to your pension. A household employer is obliged to provide a pension insurance for the employees just as other employers.

You will also accumulate pension as an entrepreneur. Entrepreneur pension insurances according to YEL income must be at least 7 656.26 € per annum (2018).

Additionally, pension is also accrued from certain income related benefits such as unemployment, parental, educational, illness, professional degrees, as well as home care of children under the age of three.

Accrual percentages

You will accrue pension as of age 17 at a rate of 1.5 per cent of your annual earnings. If you are self-employed, you will accrue pension as of age 18.

During a transition period from 2017 to 2025, you will accrue pension at a rate of 1.7 per cent if you are between the ages of 53 and 62. This is due to the pension reform that took effect in the beginning of 2017.

Pension derived from earnings, exam-based education, and home care of young children, is accrued until the end of the year in which you retire, although at the latest until your highest retirement age. Unemployment benefits accrue pension only until your lowest possible retirement age.

The pension is based on a certain percentage amount of earnings, on which the allowance is determined. Study leave and parental leave pension is accrued and counted based on a monthly income of 728.34 € (in 2018).

You may have also accrued pensions from working abroad

Applying for pension is particularly simple when it comes to countries within the EU/ETA region, Switzerland and countries which Finland has a social security agreement with (Australia, Chile, Israel, Canada, Québec and the USA). You can apply for pension from these countries with the same form and at the same time as for Finnish pension.

If however you have worked in countries outside the EU/ETA region or other social security agreement countries, then you must apply for pension independently from this country.

Each country has their own method of granting pension according to their laws. The amount of pension to be granted is also calculated in each country’s own way. Your right to pension and the amount of pension may therefore vary substantially between countries.