Pension
The Finnish pension scheme includes earnings-related pensions and national pensions. Earnings-related pensions are based on all earnings from work and self-employment during a person's working life in Finland. Earnings-related pensions are managed by authorized pension providers. National pensions entitlement is based on age, residence, and income. This type of pension is funded by the Finnish Social Insurance Institution (Kela) and applies to persons who have reached the age of 65. People born after 1965 refer to the earnings-related pension scheme for the retirement age.
In order to benefit from national pensions, beneficiaries must live or have lived in Finland for at least three years, and their other pensions and compensations should not exceed the income limit.
Finland provides for a special regime for people who have been unemployed for a long time and received basic unemployment allowance from Kela or earnings-related unemployment allowance from the unemployment fund. Eligible persons can receive old-age pension earlier and without reduction based on additional days of unemployment allowance. This regulation applies to persons who reached the age of 62 if they were born in 1957 or earlier, and at the age of 64 if they were born between 1958-1961.
Dependents/Survivors Benefits
In Finland, the survivors pension scheme is divided into two categories: the spouse's pension and the orphan's pension. Pensions are jointly paid by the Social Insurance Institution of Finland (Kela), through the National Pension Insurance (NPI) Fund, and by the deceased person's pension provider under the earnings-related pension scheme.
Kela provides for the spouse's pension to surviving spouses under the age of 65, if the survivor has been married to the deceased or has lived with them in a registered partnership before they turned 65, and if the couple had at least one child.
A child under 18 who is the deceased person's own or adopted child, or who was cared for by the deceased is eligible for the orphan's pension. This pension comprises a basic amount (EUR 70.53 per month) and EUR 141 if both parents are deceased. In addition to the basic amount, children are eligible for a top-up amount if they are less than 18 years old. The top-up amount is impacted by the other family pensions.
Invalidity Benefits
Persons over 17 and under 65 years of age who are covered under the Finnish social security system can benefit from a disability pension if their ability to work has been reduced for at least one year, following an illness, an injury, or disability. Disability pensions are paid by the Social Insurance Institution of Finland (Kela).
People suffering from a work-related injury or disease are covered by the Workers' Compensation Insurance for Finland, per the Employment Accidents Insurance Act. Employers have the obligation to insure their employees against occupational accidents or occupational diseases. This obligation kicks in if the salary paid to the employee exceeds EUR 1,500 per calendar year.
In the case where the employer has no obligation to insure his or her employees, victims of work-related accidents and diseases are still eligible for compensation, which will then be handled and paid by the Workers' Compensation Center.