A more recent publication of this set of statistics is available: Persons insured for an earnings-related pension in Finland
Employees’ average monthly insured earnings 2,857 euros
In 2016, employees’ average monthly insured earnings were 2,857 euros. Men’s average monthly earnings were 3,264 euros, women’s 2,468 euros.
The average insured earnings were highest in the age group 40–49. Men in that age group had average monthly earnings of 4,018 euros, women 2,978 euros.
Persons aged 18–29 had the lowest insured earnings at 1,775 euros a month. People in the early stages of their working life usually have lower earnings than those who have worked longer. This age group also includes a large number of low earners, such as students, who have irregular jobs.
In 2016, there were 2.5 million wage earners with a pensionable income insured under the earnings-related pension scheme. Employees include all persons engaged in employment under public sector earnings-related pension acts as well as private sector employees under the Employees Pensions Act and the Seafarer’s Pensions Act.
The insured earnings of employees include all earnings from employment that have been insured for an earnings-related pension. Therefore, the earnings also include the earnings for irregular employments such as part-time jobs and temporary jobs.
Persons insured for an earnings-related pension in Finland
Producer: Finnish Centre for Pensions
Website: Persons insured for an earnings-related pension in Finland
Subject area: Social security
Part of the Official Statistics of Finland (OSF): Yes
The statistics offers a general overview of persons aged between 18 and 68 years who are covered by the Finnish earnings-related pension scheme.
The statistics offers central frequency data of (tai: central figures for) persons (insured or retired) aged between 18 and 68 years who are covered by the Finnish earnings-related pension scheme. In addition, the statistics offers information on wage earners’ insured earnings and pension accrued for benefits received during unpaid periods and under the Act on Compensation for Pension Accrual from State Funds for Periods of Childcare and Periods of Study.
Private and public sector, earnings-related pension act, gender and age.
Methods of data collection and source
Data on those covered by the earnings-related pension insurance are based on the earnings and accrual register of the earnings-related pension scheme.
Once a year
Time of completion or release
The statistics is released at the end of the year following the statistical year. For a more detailed schedule, consult the Release Calendar https://www.etk.fi/en/statistics-2/statistics/release-calendar/
In 2005–2013, the statistics was published under the name Pensioners and Insured in Finland. After that, the statistics was divided into two separate statistics: Earnings-related Pension Recipients in Finland and Persons insured for an earnings-related pension in Finland. The first new statistics Earnings-related Pension Recipients in Finland was published in 2013.
The data of this statistics are, in the main, comparable with the equivalent data published in the previous statistics titled Pensioners and Insured in Finland. The figures may include small differences as a result of corrections and adjustments made to the statistical software.
The Quality Description of the statistics (section “Coherence and comparability of data”) includes more detailed information on the comparability of the time series.
insurance, social insurance, pensions, earnings-related pensions, employment relationship, wage earners, wages, self-employed
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Concepts and Definitions
Concepts relating to working
Covered by the earnings-related pension scheme
The data includes information on persons who have at some stage – during the statistical year or earlier – worked in the private or the public sector under an employment contract or as self-employed persons. In other words, the earnings-related pension scheme covers persons who are entitled to earnings-related pension at the time of the pension contingency or who already receive some pension based on their own work history.
Earnings-related pension act
A person is classified as being under all earnings-related pension acts that his or her work is covered by.
Earnings-related pension sector
A person is always included in the figures of the earnings-related pension sector in which he or she works (and/or from which he or she receives a pension). If the person works (and/or receives a pension) both from the private and the public sector, he or she will be included in the figures for both sectors.
An employee refers to a person engaged in employment that falls under earnings-related pension acts other than the Self-employed Persons’ Pensions Act (YEL) and the Farmers’ Pensions Act (MYEL). In other words, this definition effectively includes all other persons engaged in employment except self-employed persons and farmers. It even comprises special groups under the Local Government Pensions Act, such as persons holding an elected municipal office and informal carers. Furthermore, employees are defined as including family carers who have signed a commission agreement, even if they have not entered into an employment contract, within the meaning of the Employment Contracts Act, with a municipality or joint municipal authority.
Employed at the end of the statistical year
A person employed at the end of the year is a person who has been employed in December (employment relationships based on a monthly notification) or whose employment relationship has ended or been in force at the end of the year (employment relationships based on an annual notification). Persons who have retired but are working or are self-employed while drawing a pension are always classified as being employed.
In an employment relationship or working as a self-employed
A person in an employment relationship is a person who, in the statistical year, has been in an employment relationship for which earnings-related pension accrues, or who has been insured for pension benefits based on activities insured under the Self-employed Persons’ Pensions Act or the Farmers’ Pensions Act.
New insured under earnings-related pension acts
A person is covered by the earnings-related pension acts for the first time when he or she, after turning 18 years of age, starts in his or her first employment or self-employment that falls subject to the earnings-related pension acts.
New insured under a specific earnings-related pension act
A person falls subject to a specific earnings-related pension act when the first period of employment or self-employment that is covered by the said pension act is registered to have begun.
Not working during the statistical year
A person who is not working during the statistical year is a person who has not engaged in work for which pension accrues or has not been insured for an earnings-related pension based on activities covered by the Self-employed Persons’ Pensions Act or the Farmers’ Pensions Act. In addition, he or she must have been insured for an earnings-related pension before the statistical year or must receive a pension based on his or her own work history.
A pension recipient is a person who receives an earnings-related pension based on his or her own work history. A pension recipient may receive an old-age, disability or part-time pension or a farmer’s special pension.
Persons insured for earnings-related pension benefits
Persons insured for earnings-related pension benefits include all who, in the statistical year or earlier, have been in an employment relationship or worked as self-employed persons and who, at the time of the pension contingency, are entitled to a new earnings-related pension. Typically, a person insured for earnings-related pension benefits has not yet retired, but a retiree may also be insured if he or she has accrued new earnings-related pension while being retired.
Working during the statistical year
A person is considered to have worked in the statistical year if, during that statistical year, he or she has engaged in work for which pension accrues or has been insured for an earnings-related pension based on activities covered by the Self-employed Persons’ Pensions Act or the Farmers’ Pensions Act.
Concepts relating to earnings
Annual and monthly earnings
All earnings statistics are for insured earnings from employment. Annual earnings are converted into monthly ear-nings by dividing insured earnings received during the year by the number of months in employment.
Example. An employee was in employment from 20 August to 10 September, with insured earnings of 2,000 euros. In this case the monthly earnings entered in the statistics were 2,000 euros/2 = 1,000 euros/month, because the em-ployment spell spread across two months. If the employment spell had taken place during one month (e.g. from 2 to 22 September), then the monthly earnings would have been 2,000 euros. If this was the employee’s only spell of em-ployment during the calendar year, the annual earnings entered in the statistics would in both cases have been the same, i.e. 2,000 euros.
Benefits that accrue for unpaid periods and under VEKL
Unpaid periods are periods during which a person receives a social benefit for which pension accrues under certain conditions. Unpaid periods include periods on a parental, a sickness or an unemployment allowance. The earnings-related pension acts define the grounds based on which pension will accrue for various unpaid periods.
The State funds the benefits based on the child home care allowance and completed degrees. These benefits are based on the Act on compensation for Pension Accrual from State Funds for Periods of Childcare (of child under the age of 3) and Periods of Study (VEKL).
The benefits received for unpaid periods and based on VEKL are registered in the earnings-related pension scheme’s earnings and accrual register.
Insured earnings (i.e., pensionable income insured under the earnings-related pension scheme) include all compensation for employment paid in the form of wages, salaries, payment by results, or other consideration. The most noteworthy types of other consideration are various benefits in kind and holiday compensation, including compensations paid upon termination of employment, for instance for untaken saved leave. Earnings-related pension does not usually accrue on daily allowances and option arrangements, and they are not included in insured earnings. In the statistics presented here, insured earnings do include the employee’s pension contribution, even though the contribution does not count as pensionable income.
Deciles are used to divide employees into ten equally large groups. Decile boundaries indicate the level of earnings beneath which lie 10%, 20%, … , 90% of all cases.
When all employees are rank-ordered according to earnings, median earnings are the mid-point of the earnings distribution. There are exactly the same number of employees above the median as below the median. The median is less sensitive to outliers than the average. Especially in skewed distributions such as those of earnings, the median gives a better representation of central tendency than average.
Quality description: Persons insured for an earnings-related pension in Finland 2016
The statistics Persons insured for an earnings-related pension in Finland is released by the Finnish Centre for Pensions.
The Act on the Finnish Centre for Pensions states that the responsibilities of the institution include, for example, the compiling of statistics in its field of operation. The production of the statistics at the Finnish Centre for Pensions is handled by the Statistics Unit of the Planning Department.
The Finnish Centre for Pensions pays the costs of the statistics Persons insured for an earnings-related pension in Finland.
Relevance of statistical information
In Finland, statutory pensions consist mainly of earnings-related and national pensions. The earnings-related pensions are based on earnings from work while the national pensions are residence-based. Persons insured for an earnings-related pension offers an overall view of persons aged 18–68 years who are covered by the Finnish earnings-related pension system and of their work history.
In the private sector, the earnings-related pension provision is administered by earnings-related pension insurance companies, industry-wide pension funds and company pension funds. Keva handles most of the public sector pensions. The Finnish Centre for Pensions is the central body of the earnings-related pension system. One of its tasks is to collect the information required for the administration of earnings-related pension matters for the purpose of handling the assignments prescribed to it.
The statistics Persons insured for an earnings-related pension covers the entire statutory earnings-related pension provision. It contains the central figures of all persons aged 18–68 years who are covered by the Finnish earnings-related pension system, by earnings-related pension sector and age.
Persons covered by the earnings-related pension system have been divided into those insured for an earnings-related pension and those retired. The number of persons insured for earnings-related pension insurance is divided into two groups: those working and those who were neither working nor retired at the time of compiling the statistics. Other classifiers in the statistics include age and gender.
The statistics also includes data on other periods for which pension accrues, for example, registered unpaid periods and periods of VEKL benefits. This data is presented by benefit type.
The terms and definitions used in the statistics are presented at the website of the statistics, atwww.etk.fi/statistics.
The statistics serves social security specialists, researchers and the media, as well as others in the field requiring information in this area. This is the most extensive statistics available of persons insured for earnings-related pensions in Finland.
Correctness and accuracy of data
The data of the statistics is based on data in the earnings and accrual register (composite data). The register includes data on the persons’ work history and unpaid periods, periods of childcare and completed degrees required to determine the pension. This data is used to form the working life of persons insured for an earnings-related pension. Working life data is stored in the statistical register, from which the statistics about the insured are produced.
Together with the earnings-related pension providers, the Register Services Department of the Finnish Centre for Pensions is responsible for the contents of the earnings and accrual register, the accessibility, scope, legality and accuracy of the data needed for the implementation of pension provision and the clarification of error conditions in the contents. The register’s handling systems include permissibility and logical checks where the programme requires correction or verification of data. The error messages may also be comments that do not inhibit the registration of data.
Arek Oy is responsible for the information technology aspects of the earnings- and accrual register. Arek Oy is a company jointly owned by the pension providers and the Finnish Centre for Pensions.
Flaws detected in the statistics are immediately corrected on the website. A correction page is added to the printed statistics that have not yet been distributed. If the error is substantial, a separate bulletin is issued for those who have already received the printed statistics.
Timeliness and promptness of published data
The data for the statistical year 2013 was released in December 2015. The data for the statistical year 2014 will be released during the first half of 2016.
In the future, the statistics will be released once a year, towards the end of the year following the statistical year. The release date of the statistics is presented in the Release Calendar on the website of the Finnish Centre for Pensions at www.etk.fi/statistics, section ‘Release Calendar’. The data in the statistics is final.
Coherence and comparability of data
The statistics has been released since 2005 and its data is comparable as of 2007. As for the private sector, its time series go back to 1977.
In 2007–2013 (the statistical years 2005–2013), the statistics was released under the name Pensioners and Insured in Finland. As of the statistical year 2015, the data will be released in two different statistics: Persons insured for an earnings-related pension in Finland and Earnings-related pensioners in Finland.
Availability and clarity of data
The statistical data will be released annually in the statistics Persons insured for an earnings-related pension. The statistics will be available in print and online at the website of the Finnish Centre for Pensions. Instructions on how to order the printed statistics can be found on the website of the Finnish Centre for Pensions and on the inside of the title page of the printed statistics. Some of the data in the statistics will also be released in the statistical database of the Finnish Centre for Pensions, at http://tilastot.etk.fi/?lang=1.
A description of the statistics has been presented on the website of the Finnish Centre for Pensions, at www.etk.fi/statistics.
The statistical service of the Finnish Centre for Pensions provides additional information about the statistics upon request per e-mail at tilastot(at)etk.fi.