Important information for people on part-time pension
Part-time pension was discontinued at the start of 2017 as part of the pension reform.
Part-time pensions which have already started will not be affected, however. Your part-time pension will continue as before until you retire on old-age pension.
You can work one or more jobs while on part-time pension as long as your combined earnings remain within the limits provided.
You may transition back to full-time work from part-time pension but you must return to part-time work within six months at the most in order for payment of the part-time pension to resume. For the payment of a part-time pension, your employer must submit to Keva an OE appendix (pdf, in Finnish) completed from the beginning of the month when you return to part-time work.
If your full-time employment lasts longer, your part-time pension will be terminated. You can then no longer re-retire on part-time pension because of the pension reform, but you will have the option of retiring on partial early old-age pension.
Income limit letter
If you are on part-time pension, you will receive an income limit letter each year to let you know how much you can earn while on pension. The letter will arrive in January.
How much can I earn on part-time pension?
When working part time, you must earn between 35% and 70% of your standard full-time earnings. The income limit is absolute, which means that your earnings must fall within this range. You are personally responsible for monitoring your income development.
What does standard earnings mean? Standard earnings means the average of your earnings in the five years preceding the start of the part-time pension.
You cannot be absent from work for an uninterrupted period of more than six weeks. Annual holiday and sick leave are excluded, however.
In addition to income from part-time work, the following also count towards earnings:
- income and self-employed person’s reported income under all pension acts (except for self-employed person’s reported income that is exempt from self-employed persons’ YEL pension contribution)
- family carer’s and caregiver’s fees
- lecture fees, writer’s fees, expert fees and speaking fees
- fees for service in positions of trust with the State and the Church
- fees for service in municipal positions of trust (except for attendance fees). All perquisites, holiday bonuses and various extras such as compensation for shift work and overtime that are paid on top of actual salary also count towards earnings. The following do not count towards earnings:
- capital income, including but not limited to interest income, dividends, capital gains and income from the sale of wood
- income received from employee inventions
- copyright payments
- child home care allowances
- tax-exempt per diem allowances Any withdrawal of voluntary pension savings also does not affect part-time pension.
If your earnings change by more than 15%
You must notify Keva if your earnings increase or decrease by more than 15% compared to your part-time earnings when your pension started. Your part-time pension will then be re-calculated and any excess pension paid to you will be clawed back.
Changes in earnings of less than 15% as well as temporary extra work or overtime work usually do not result in any changes to part-time pension.
- Report changes to part-time work to Keva with the an OE appendix: OE appendix (pdf, in Finnish)
Your part-time earnings may never exceed 70% of your full-time earnings. This limit of 70% is absolute: if your earnings exceed it, we will have no choice but to suspend or terminate your part-time pension. If pension has already been paid in excess, we will claw back the excess.
If your part-time earnings already amount to 70% of your standard earnings and you are in line for a pay rise, from a purely pension point of view you must decline the pay rise. In such a case, you should, for example, agree on a reorganisation of work with your employer such that your hours are reduced enough to make the higher pay fit within the limit of 70%.
Your part-time earnings also may not be less than 35% of your standard full-time earnings
Amount of part-time pension
The amount of part-time pension is half of the difference between standard full-time earnings and earnings from part-time work, in other words half of the earnings reduction that results from working part time.
- Example: If your standard full-time earnings work would be €2,000 per month and you would earn €1,000 per month in your part-time job, your earnings reduction would be €1,000 per month and your part-time pension would be half of this, i.e. €500 per month.
€2,000 - €1,000 (earnings reduction) €1,000 /2 = €500 (amount of part-time pension) Your earnings from part-time work must throughout remain at the level at which these stood at the start of the part-time pension.
Taking part-time pension reduces the amount of your old-age pension because when on part-time pension, your income is lower than it would be if you were working full time.
Accrual of pension on part-time pension
Part-time work accrues pension in the amount of 1.5% per year except for people born in and after 1954, to whom pension accrues in the amount of 1.7% per year from the age of 53 onward until they turn 63. Pension accrual ends at the age of 68. The earnings reduction also accrues pension for people born before 1953.
NB! The higher accrual percentage for people over 63 will be discontinued in the pension reform.
From part-time pension to old-age pension
Part-time pension is not automatically converted into old-age pension and you need to file an application for old-age pension either in the online service My Pension or in writing.
- Please see under Old-age pension for more details.
You can retire on old-age pension after reaching the lowest retirement age for your age group. You can remain on part-time pension until the age of 68, after which you will receive old-age pension. You may work alongside receiving old-age pension but please note that the termination of employment is a condition for being granted old-age pension.