On 30 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 2009 was confirmed at 1.192, the earnings-based pension index at 2286 and the transitional period index was confirmed at 2494. The confirmed wage coefficient means a rise of about 6 per cent, the earnings-based pension index a rise of close on 5 per cent and the transitional period index a rise of slightly more than 5.5 per cent in comparison with 2008.

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 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.