Finnish earnings-related pensions will increase by 0.9 per cent from 1 January 2026, as the Ministry of Social Affairs and Health has confirmed the indices for employment pension security for 2026.

The employment pension index, which is used to adjust pensions in payment annually, has been set at 3104, allowing for a 0.88 per cent increase in pensions.

Meanwhile, the wage coefficient is 1.712. Compared to 2025, the wage coefficient will increase by 2.33 per cent.

The wage coefficient adjusts pensions so that a retiree’s past earnings are updated to the wage level of the year the pension begins.

Finnish Centre for Pensions (ETK) economist, Timopekka Hakola, said: “For a pensioner who currently receives a gross pension of €2,000 per month, the change in the pension index will mean an increase of around €18 [a month].”

In 2024, the average employment pension for those retiring from the earnings-related pension system was €2,044 per month. The average monthly pension for Finns was €2,100.

Index adjustments are affected by changes in the consumer price index and earnings index calculated by Statistics Finland. Price developments have a greater weight in the employment pension index, and wage developments in the wage coefficient.

All employment pensions currently in payment are adjusted annually according to the employment pension index.

This applies to old-age and partial old-age pensions, disability pensions and rehabilitation allowances, family pensions such as widow’s and child’s pensions, as well as career and vocational rehabilitation pensions.

The first index adjustment is made in the year following the start of the pension. For example, someone retiring in 2025 will have their pension adjusted for the first time in January 2026, when it is updated in line with the employment pension index.

---