Pension reform took place in 2017 which gradually rises retirement age, standardizes pension accrual and introduces new pension options.
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| Info |
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| The pension reform includes a transition period 2017-2025 and during that period all people aged from 53 to 62 have 1,5 percent higher contribution rate. Also their pension accrual rate is 1,7 % instead of 1,5%. |
| Age | Employee contribution percent |
|---|---|
| 17–52 years | 6,15 % |
| 53–62 years | 7,65 % |
| 63–67 years | 6,15 % |
Contribution as an entrepreneur
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| Info |
|---|
| The pension reform includes a transition period 2017-2025 and during that period all people aged from 53 to 62 have 1,5 percent higher contribution rate. Also their pension accrual rate is 1,7 % instead of 1,5%. |
| YEL payment percentages | |
|---|---|
| Age | YEL payment |
| 18–52 years | 24,10 % |
| 53–62 years | 25,60 % |
63–67 years | 24,10 % |
| Starting entrepreneur (22 % reduction) | |
| 18–52 years | 18,80 % |
| 53–62 years | 19,97 % |
| 63–67 years | 18,80 % |
Pension accrual
As of the year 2017 Pension accrual is standardized and pension will accrue from the whole salary. Pension will accrue from the age of 17 (18 for entrepreneurs) so that everyone will have an accrual rate of 1,5 %.
| Info |
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| The years 2017-2025 are a transition period and during that period people that are 53-62 years old, will have an accrual rate of 1,7 %. Pension accrual doesn't affect salary payment. |
| Age | Pension accrual rate |
|---|---|
| 17–52 years | 1,5 % |
| 53–62 years | 1,7 % |
| 63–67 years | 1,5 % |
Retirement age
The general retirement age will rise gradually from the current 63 years by three months per year, until it reaches 65 years. The retirement age will concern people that are born in the year 1955 or after and who will turn 62 after the year 2017. Retirement age is increased by three months per year and will have an effect at first to those who are born in the year 1955. Their retirement age will be 63 years and three months. The retirement age will increase after that by three months per year so people born in the year 1956 will have retirement age of 63 years and six months. Retirement age will be rised until the general retirement age will reach 65 years. If an employee has been retired before the year 2017, the reform will not affect him or her.
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