eläkemaksuihin

Eläkemaksuihin refers to pension contributions in Finnish. These contributions are mandatory payments made by both employees and employers in Finland to fund the statutory earnings-related pension system. The purpose of eläkemaksuihin is to ensure that individuals have a source of income during their retirement years.

The contribution rates are determined by legislation and are typically a percentage of an individual's earnings. Employees have a portion deducted directly from their salary, while employers pay a matching contribution on behalf of their employees. These contributions are collected by pension providers, such as Ilmarinen, Varma, or Elo, which then invest the funds to generate returns that will cover future pension payments.

The earnings-related pension system in Finland is a pay-as-you-go system, meaning that current contributions largely fund current pensions. However, a portion of the contributions also goes into the pension funds to ensure the long-term solvency of the system. The exact percentages for eläkemaksuihin can vary slightly year by year and depend on factors such as the employee's age.

The system is designed to provide a reasonable level of income replacement in retirement, supplementing other potential pension sources like the basic pension. Understanding eläkemaksuihin is crucial for both employees and employers in Finland to comprehend their financial obligations and the benefits of the pension system.