Earnings-related pensions

The earnings-related pension accrues from annual earnings or a self-employed person's proven earnings according to the relevant rate, which is tied to age. But it does not just accrue from paid employment but also certain welfare benefits, periods of study leading to qualifications, and periods caring for a child under the age of 3.

Employers are under an obligation to insure all their employees, take out pension insurance on their behalf with a pension institution the employers choose themselves, and pay the premiums. Self-employed persons take care of their own insurance arrangements. An earnings-related pension is granted and paid by the institution which insured the employee in question in his or her last job or the self-employed person when he or she ceased business activities.

A statutory earnings-related pension provides security for old age, inability to work or in the event of the death of the family provider. It is worth checking your earnings-related pension  record to see if all the earnings and benefits that determine the pension have been entered in the registers. This can be done at www.tyoelake.fi or on your pension institution’s website. Pension institutions also have services to help employees work out how much pension they will receive.