Pension Ceiling

Within the Finnish earnings-related pension scheme, there is no upper limit for the pensionable wage or the pension itself. In many other countries, the pension accrued within the statutory earnings-related pension scheme has been limited with a pensionable wage and/or pension ceiling. The following table shows upper limits of the pensionable wage in some countries.

In most countries, the pensionable wage ceiling that limits the pension accrued within the statutory earnings-related pension scheme is approximately 1-2 times the country’s average wage.

It is possible to break the pension ceiling with various supplementary pension arrangements that supplement the statutory pension provision. In some countries, supplementary pension arrangements are obligatory. Generally speaking it could be noted that the lower the pensionable wage ceiling is in a country, the higher the role of supplementary pension schemes that break the ceiling. However, their scope varies from one country to another.

Pensionable wages and pension ceilings of the statutory pension scheme in some countries (2014)

Countries  without pension ceiling  
 NL
 PT
 FI
 DK
 EE
 IE
Country  Pensionable wage ceiling, €/month Pension ceiling, €/month
 BE 4,400 2,720 (household)
2,180 (living alone)
 UK 4,190
 ES 3,600 2,970 *
 IT 8,340

 AT 4,530 3,620 *
 EL 5,550 2,770
 LU 9,610 7,960
 FR 3,130 1,570
ARRCO: 9,390
AGIRC: 25,030
 SE 4,180
 GE 5,950 (old states)
5,000 (new states)
 NO 6,420 / 10 700 (OTP)

 CH – (AHV) / 5,700 (BVG) 1,940 (AHV)
 US 7,390 2,624
 CA 3,090 734
Legends:
-: no ceiling
*: pension is paid 14 timea per year.

Acronyms: AHV = Mandatory pension system in Switzerland, BVG = Complementary pension scheme in Switzerland, OTP = Complementary pension scheme in Norway