Pension reform took place in 2017 which gradually rises retirement age, standardizes pension contributions and pension accrual and introduces new pension options.
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The most visible changes for employer and employee are the changed pension contribution. You can read more about them below. Pension contribution rates are unified for employees and for entrepreneurs.
Changes that don't affect salary payment
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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%. |
Employee contribution percent | |||||
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| Age | 2020 | 2019 | 2018 | 2017 | 2016 |
| 17–52 years | 7,15 % | 6,75 % | 6,35 % | 6,15 % | 5,70 % |
| 53–62 years | 8,65 % | 8,25 % | 7,85 % | 7,65 % | 7,20 % |
| 63–67 years | 7,15 % | 6,75 % | 6,35 % | 6,15 % | 7,20 % |
Contribution as an entrepreneur
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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%. |
| YEL payment percentages | |||||
|---|---|---|---|---|---|
| Age | 2020 | 2019 | 2018 | 2017 | 2016 |
| 18–52 years | 24,10 % | 24,10 % | 24,10 % | 24,10 % | 23,60 % |
| 53–62 years | 25,60 % | 25,60 % | 25,60 % | 25,60 % | 25,10 % |
63–67 years | 24,10 % | 24,10 % | 24,10 % | 24,10 % | 25,10 % |
| Starting entrepreneur (22 % reduction) | |||||
| 18–52 years | 18,80 % | 18,80 % | 18,80 % | 18,80 % | 18,408 % |
| 53–62 years | 19,97 % | 19,97 % | 19,97 % | 19,97 % | 19,578 % |
| 63–67 years | 18,80 % | 18,80 % | 18,80 % | 19,578% | |