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 (2018)
|Country||Pensionable wage ceiling, €/month||Pension ceiling, €/month|
|GE||6,500 (old states)||–|
|5,800 (new states)||–|
|NO||6,140 / 10,380 (OTP)
|CH||6,340 (BVG)||2,030 (AHV)|
|Countries without pension ceiling|
|Denmark, Estonia, Finland, Great Britain, Ireland, the Netherlands, Portugal|
|-: 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|