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 wage ceilings and average wages in some countries 2018

Pensionable wages and pension ceilings of the statutory pension scheme in some countries (2018)

Country  Pensionable wage ceiling, €/month Pension ceiling, €/month
 BE 4,640 2,470
 ES 3,600 3,010 *
 IT 8,360
 AT 5,130
 EL 5,860 2,470
 LU 9,990 8,230
 FR 3,310 1,660
ARRCO: 9,930
AGIRC: 26,490
 SE 4,130
 GE 6,500 (old states)
5,800 (new states)
 NO 6,140 / 10,380 (OTP)
 CH 6,340 (BVG) 2,030 (AHV)
 US 9,470 2,470
 CA 3,180 770
Countries without pension ceiling
Denmark, Estonia, Finland, Great Britain, Ireland, the Netherlands, Portugal
Legends:
-: no ceiling
*: pension is paid 14 times per year.
Acronyms: AHV = Mandatory pension system in Switzerland, BVG = Complementary pension scheme in Switzerland, OTP = Complementary pension scheme in Norway