Pension accrues from the work in the same way as for
Finns
A pension accrues from work performed by a foreigner in
Finland under Finnish legislation in the same way as for a Finn.
In Finland, pension provision consists of the employment-based
earnings-related pension and the residence-based national pension .
The earnings-related pension safeguards the stabilised level
of consumption achieved during the time of active participation in working life.
The earnings-related pension provides security in the event of
old age, incapacity for work, unemployment or death of the family breadwinner
for employees and self-employed persons.
Employee posted from a EU/EEA country, Switzerland or an
agreement country
An employee from another EU/EEA
country Switzerland or agreement country who has been posted to Finland
may remain covered by the social security in the country of origin and he or she
accrues a pension to that country. One precondition for this is a certificate on legislation applicable from the home
country.
Example
A French
employer sends an employee who has been working in
France
to work
for a year in Finland. The employee is insured in France.
He has a certificate of
posting from France. The employee is not insured
under the Employees
Pensions Act (työntekijän eläkelaki TyEL) in Finland.
Employee sent from another country
Employees whom the foreign employer sends from some other
country than a EU/EEA country, Switzerland or an agreement country after 1
January 2009 to work only in Finland for a maximum of two years need not be
insured under TyEL. If the employee is covered by the Finnish social security
legislation when the assignment in Finland starts, he should be insured,
however.
Example
An Indian
employer sends an employee working in India to work in
Finland
at the Finnish
subsidiary of the employer company group for 11 months.
The employee is not insured under
TyEL.
If the employment in Finland of such an employee lasts for
more than two years, the Finnish Centre for Pensions may on application exempt
the employer from the obligation to take out insurance under TyEL for the
employee. The exemption may be granted for a maximum period of five years,
calculated from the start of the work in Finland. The precondition in this case
is that pension provision has been arranged for the employee in some other
way.
Example
A Chinese employer
sends an employee working in China to work in
Finland
for four years. For this
period pension insurance has been arranged for
the
employee in
China. The employer applies for exemption from the
obligation
to take out
insurance under TyEL and encloses with the application
a
certificate stating
that the employee is covered by a Chinese
pension
insurance
arrangement. The Finnish Centre for Pensions grants
an
exemption from the obligation
to take out insurance under TyEL for
the employee for the period of
employment in Finland.
After five years of employment the work in Finland should be
insured under TyEL.
Further information on foreign employers’ possibility of
exemption from the obligation to take out pension insurance is available on the
website of the Finnish Centre for Pensions.
External links:The Finnish Centre for Pensions, The Social
Insurance Institution