Earnings-related pension contributions in 2020
The central labour market organisations have agreed on the private-sector earnings-related pension contributions for 2020. The Ministry of Social Affairs and Health will confirm the grounds for the earnings-related pension contribution upon application by the earnings-related pension insurers.
The average contribution will remain at its current level at 24.4 per cent of the gross monthly wage.
The contributions for 2020 are based on the competitiveness pact previous agreed upon by the central labour market organisations.
The earnings-related pension contribution will not rise, but the share paid by employers will be reduced by 0.40 percentage points and the employee’s share of the contribution will rise correspondingly by 0.40 percentage points.
The employees’ contribution in 2020 will be 7.15 per cent of their monthly gross wage for persons under 53 or over 62 years. For persons between the ages of 53 and 62, the contribution rate will be 8.65 per cent.
The average contribution for employers will be 16.95 per cent of the wages paid.
The contribution for self-employed persons will remain at the same level as in 2019. For persons under 53 or over 62 years, the contribution will be 24.10 per cent of the annual confirmed income. For self-employed persons between the ages of 53 ad 62, the contribution will be 25.60 per cent of the annual confirmed income.
Mikko Kautto, Chair of the Labour market organisations’ pension negotiation group