Monday. 17.06.2024

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, announced the Finnish Ministry of Social Affairs and Health.

The full amount of the national pension will be raised by about 34 euros and the full amount of the guarantee pension by 50 euros per month. Approximately 609,000 pensioners with a total pension of less than 1,200-1,300 euros 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 662.86 euros per month and of a married or cohabiting person 591.79 euros per month. The full amount of the guarantee pension will be 834.52 euros.

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.

Reduce poverty

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.

Lower Finnish pensions will increase in January 2020