peruseläkejärjestelmä

Peruseläkejärjestelmä refers to the basic pension system in Finland. It is a statutory social security benefit that provides a minimum income for old-age pensioners. The system is primarily funded through contributions made by employees, employers, and the state.

The aim of the peruseläkejärjestelmä is to ensure that all citizens have a basic level of financial security in their old age, regardless of their employment history or income level during their working lives. This is achieved through a combination of earnings-related pensions and a guaranteed minimum pension.

Eligibility for the peruseläkejärjestelmä is generally based on Finnish citizenship or residency. The pension amount is calculated based on a person's earnings history and the number of years they have been insured. For those with low earnings or limited work history, the system provides a supplementary guaranteed pension to bring their total pension up to a specified minimum level.

The peruseläkejärjestelmä is administered by Kela, the Social Insurance Institution of Finland. Changes and reforms to the system are periodically introduced to address demographic shifts, economic conditions, and the sustainability of pension funding. It is a cornerstone of Finland's welfare state, aiming to provide economic stability and social inclusion for its elderly population.