Increases in the smallest pensions as of 1 January 2020

Tax-funded pensions of people receiving a small pension will be subject to a general increase and an index increase as of 1 January 2020. The full amount of the national pension will be raised by about EUR 34 and the full amount of the guarantee pension by EUR 50 per month. Approximately 609,000 pensioners with a total pension of less than EUR 1,200–1,300 per month will receive at least a small increase in their pension.

After the increase, the full national pension of a person living alone will be EUR 662.86 per month and of a married or cohabiting person EUR 591.79 per month. The full amount of the guarantee pension will be EUR 834.52.

The limits of the supplementary deductible for the pension recipient's housing allowance will be amended so that the increase in pensions will not affect the amount of the pension recipient's housing allowance and thus reduce the increase in the income available to the pensioner.

The increase in pensions will help to safeguard the livelihood of pensioners and reduce poverty and non-participation. By raising the national pension and the guarantee pension, the improvement in income can be targeted at those receiving the smallest pensions.

The supplements to farmers’ early retirement aid will be raised to correspond to the increase in the national pension. The increase in the national pension will also raise the amount of the front veteran's supplement and of the full basic allowance under the Act on Military Support, as they are tied to the amount of the national pension.

The pension subsidy and the minimum earnings limit for leaving the disability pension in abeyance will rise, as they are tied to the amount of the guarantee pension. The minimum amount of rehabilitation allowance for young people and for persons in vocational rehabilitation will still correspond to the amount of the guarantee pension.

The Government submitted the relevant acts for approval and the President of the Republic approved the bill on Wednesday, 4 December. The amendments will enter into force on 1 January 2020.

Links

• Questions and answers on increases in small pensions (in Finnish)
• National pension
• Guarantee pension

Inquiries

Hanna Tossavainen, Senior Specialist, Legal Affairs, tel. +358 295 163 005, [email protected]