On 27 October, the Ministry of Social Affairs and Health issued decrees on the wage coefficient and earnings-based pension index as intended by the Employees’ Pensions Act (TyEL) and it confirmed the so-called transitional period index.

The wage coefficient for 2011 was confirmed at 1.253, the earnings-based pension index at 2323 and the transitional period index was confirmed at 2578. The confirmed wage coefficient means a rise of slightly less than 1,8 per cent, the earnings-based pension index a rise of slightly less than 1,4 per cent and the transitional period index a rise of slightly less than 1,6 per cent in comparison with 2010.

The earnings limits, amounts of money and limits prescribed by the Employees’ Pensions Act (TyEL) and other earnings-related pension legislation are adjusted annually as from the beginning of January using a wage coefficient, and the currently paid earnings-based pension is adjusted using the earnings-based pension index. A transitional period index is to be applied for certain earnings-based pensions until the end of 2011. The index adjustments, which take into consideration the weighting of changes in salaries and consumer prices, aim at maintaining the true value of long-term social security benefits.