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EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure FI-2020-18/558 – measures in Finland

Temporary deductions to employers' pension contribution in the private sector

Yksityisen sektorin työnantajien työeläkemaksujen tilapäinen alentaminen

Country Finland , applies nationwide
Time period Temporary, 01 May 2020 – 31 December 2020
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
Author Amanda Kinnunen (Oxford Research) and Eurofound
Measure added 13 April 2020 (updated 14 July 2020)

Background information

In accordance with Employees' Pensions Act (Työtekijän eläkelaki) (395/2006), both employer and employee contribute to employees' pension. The basic percentage of employers contribution in 2020 is 25.3% of employees salary. Company size and other factors may however increase or decrease this percentage. In order to ease the pressure the outbreak of COVID-19 puts on employers and financial stability, amendment to the Employees Pensions Act and other relevant acts that temporarily decrease the employers contribution by 2.6%, have been passed.

Content of measure

This measure applies to all private sector employers.

The Government estimates that temporary deductions to employers' pension contribution will amount to €1.05 billion.

In order to cover for deductions made in 2020 and increase the buffer of the work pension system that is used for financing these temporary deductions, employers' pension contribution will be increased by 0.4 between 2022 and 2025. The monetary support provided with the help of this measure is thus temporary.

There is no estimate regarding how much this temporary deduction will affect the contribution of an individual employer to its employees pensions.

Employees' contribution to pension will not be affected by this measure.

Use of measure

No information up to this date.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Social partners jointly

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Agreed (outcome) incl. social partner initiative Agreed (outcome) incl. social partner initiative
Form Any other form of consultation, institutionalised (as stable working groups or committees) or informal Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Peak or cross-sectoral level


All peak-level social partners (Confederation of Finnish Industries, the Confederation of Unions for Professional and Managerial Staff in Finland, the Central Organisation of Finnish Trade Unions and the Finnish Confederation of Professionals STTK) were involved in designing this measure.

Views and reactions

In March 2020, the Finnish peak-level social partners jointly proposed a set of actions for the Finnish Government. These proposed measures seek to amend labour law and facilitate adaptation of businesses to the new circumstances. They were proposed as a package of measures that includes both measures that support adaptation of businesses to the new market situation and measures that improve the situation of employees who have been dismissed or temporarily laid off.

Temporary deductions to employers' pension contribution were part of the set of measures proposed by the social partners.


  • 20 March 2020: Social partners’ proposals to help businesses in the corona crisis (
  • 02 April 2020: Hallituksen esitys eduskunnalle laiksi työntekijän eläkelain mukaisen vakuutusmaksun tilapäisestä alentamisesta vuonna 2020 (
  • 07 April 2020: Työnantajan työeläkemaksuja alennetaan väliaikaisesti koronaepidemian aiheuttaman vaikean taloustilanteen vuoksi (


Eurofound (2020), Temporary deductions to employers' pension contribution in the private sector, measure FI-2020-18/558 (measures in Finland), EU PolicyWatch, Dublin,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.