Eläkevakuutuslaki

Eläkevakuutuslaki, or the Finnish Employees Pensions Act, is the primary legislation governing occupational pensions in Finland. It outlines the framework for mandatory pension insurance for employees and self-employed individuals. The law specifies the conditions for acquiring pension rights, the calculation of pension benefits, and the contributions required from both employers and employees. It also defines the roles and responsibilities of pension providers, primarily the statutory earnings-related pension institutions.

The Eläkevakuutuslaki ensures that individuals accrue pension entitlements based on their earnings throughout their working life. This provides a safety net and income security for individuals during their retirement. The law is periodically updated to reflect changes in demographics, the economy, and social needs. It works in conjunction with other related legislation, such as the Self-Employed Persons' Pensions Act (YEL) and the Farmers' Pensions Act (MYEL), to cover different categories of workers.

The Finnish pension system, largely governed by this act, is a pay-as-you-go system supplemented by funded components. Contributions collected are used to pay current pensions, but a portion is also invested to ensure the long-term sustainability of the system. The Eläkevakuutuslaki is a cornerstone of the Finnish social security system, aiming to guarantee a reasonable standard of living for all citizens in old age.