Finnish earnings-related pension contributions to return to pre-Covid levels

Finnish central labour market organisations have agreed on the private-sector earnings-related pension contributions for 2021, confirming plans for a return to pre-Covid rates.

The Finnish Centre for Pensions explained that this will see an average contribution in 2021 of 24.4 per cent of the gross monthly wage forming the basis of the contribution, following a temporary reduction amid the pandemic.

The Minister of Social Affairs and Health, Aino-Kaisa Pekonen, is expected to confirm the grounds for the earnings-related pension contribution upon the application by the earnings-related pension insurers.

As of 2021, employee contributions for those aged under 53 and over 62 will be 7.15 per cent , increasing to 8.65 per cent for those aged 53-62.

This is combined with an average employer contribution of 16.95 per cent of salary.

Meanwhile, contribution levels for self-employed persons will remain at the same level as in 2020, at 24.10 per cent of the pension-declared income for those under 53 or over 62.

For self-employed workers between the ages of 53 and 62, this contribution will be slightly higher, at 25.6 per cent of the pension-declared income.

The Finnish Centre for Pensions confirmed that these payments were prepared in accordance with the 2016 negotiation result, as is required under the Finnish Employees’ Pension Act (TYEL).

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