From full-time work to part-time work
The qualifying condition for the part-time pension is that the
employee
- has accrued an earnings-related pension for at least five years (60
months) during the past 15 years when calculated on the basis of the annual
earnings
- has been in full-time employment for not less than 12 months during the
past 18 months; this period of 18 months may be extended due to illness on
certain conditions by at the most six months, i.e. to two years
- shifts to part-time employment and reduces his or her earnings
- does not receive any other earnings-related pension from Finland or
abroad; a survivors' pension and a national pension are, however, not a
hindrance to the award of a part-time pension.
Conditions for full-time employment
The employee’s full-time work must be in accordance with what is agreed on
full-time employment in his or her field of activity. If the employee has
parallel contracts of employment, the total hours of work must amount to at
least 35 hours a week.
Those who are already in part-time employment cannot receive a part-time
pension. Neither do persons who are not gainfully employed or who are only
occasionally employed have the right to a part-time pension.
Conditions for part-time employment
When shifting to part-time work, the salary must also be reduced to 35-70 per
cent of the salary from full-time employment. The reduction in earnings should
correspond to the reduction in working hours.
Part-time work can be work carried out in Finland or in another EU Member
State .
The part-time pension ends if the working time is interrupted for more than
six weeks due to other reasons than the annual holiday or a sick leave. For
example, a temporary lay-off is such an interruption.
Part-time pension and lay-offs
If you are laid off while receiving a part-time pension, you will need to
inform your pension provider immediately. Also inform your pension provider of
any changes or end to the lay-off.
A lay-off of at most six weeks does not usually result in the part-time
pension being cancelled. If your lay-off continues beyond the originally
reported six weeks, your part-time pension will be cancelled when six weeks have
passed from the time the lay-off began.
A lay-off may be partial or recurring, in which case the conditions for
receiving part-time pension are reviewed based on the overall situation. The
pension provider evaluates the situation based on information received from the
lay-off notification or the employer. The part-time pension is cancelled if the
conditions for receiving it are no longer met.
Reapproval of the part-time pension
If your part-time pension has been cancelled e.g. due to lay-offs or the
earnings limit being exceeded, you may start receiving it again when the
conditions are once again met. If your part-time pension has been left cancelled
for at most six months and you become eligible for receiving it again, it
will be the same pension that you were awarded the first time. The basis is
still the same stabilised earnings level as when it was awarded to you the first
time. You will not need to submit a new application, but you will need to
inform your pension provider that you are returning to part-time retirement
within six months of your pension being cancelled.
If more than six months have passed, you may no longer receive your old
pension back. You may retire on a part-time pension again once you have met the
preconditions. This means that you will have to work full-time for 12 months
before a new period of part-time pension may begin. The amount of the part-time
pension will be recalculated. In order to receive a part-time pension again you
will need to submit a new application.
Becoming incapable of work or unemployed
A person who draws a part-time pension may become ill and incapable of work.
The daily allowance paid by the Social Insurance Institution
(Kela) for the period of the sick leave is calculated according to the earnings
from the part-time employment. During this time, the person also receives the
part-time pension to its former amount. If the disability continues, the person
can be granted a disability pension in addition to the sickness allowance. In
this case the part-time pension is withdrawn.
The part-time pension terminates also if the part-time employment ends and
the person becomes unemployed. The person must register at once with the
employment office as an unemployed jobseeker. He or she will then receive an
unemployment daily allowance in the form of a national basic unemployment
allowance or in the form of an earnings-related unemployment allowance, and if
the unemployment is prolonged, the person will draw an unemployment pension. The
earnings-related unemployment allowance is calculated on the basis of the
full-time work.
From a part-time pension to an old-age pension
Persons born in 1947 or later may retire on an old-age pension between ages
63 and 68, after ending the part-time work.
The old-age retirement age of a person born in 1946 or earlier is 65 years.
If you continue working part-time after reaching the age of 65, the part-time
pension is at the age of 65 automatically changed to an old-age pension of the
same size. You may also choose to retire on an old-age pension before turning
65. In such cases no reduction for early retirement will be made to the pension.
Internal link: Effect on the old-age
pension