Pension accrues throughout a person’s career at a rate of 1.5% on employment earnings from the age of 17 until the lower age limit for old-age pension. During the transition period that ends on 31 December 2025, those between the ages of 53 and 62 accrue pension at a rate of 1.7% per year.
If a person retires later than at the lower age limit for old-age pension, his or her pension will be increased as a result of deferring retirement. The increase for deferred retirement is 0.4% for each month of deferral.
Pension accrues on one’s full earnings, meaning the employee’s earnings-related pension contribution no longer reduces the earnings on which the pension is based.
The pension contribution rate is the same for all employees, regardless of age. The exception is those who receive a higher accrual during the transition period; for them, the pension contribution is 1.5 percentage units higher than it is for younger employees.