Information for pension and rehabilitation benefit recipients

This page contains important information for pension and benefit recipients about the payment of the pensions and benefits and, for example, about working alongside pension. 
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Pension and benefit payments

The payment date for pensions and rehabilitation allowances is the first banking day of each month. If the first day of the month falls on a Saturday, Sunday or a holiday, the payment will be made on the next business day.  

Elo’s dates for the payment of pensions and rehabilitation allowances in 2019

2 January                  2 May                   2 September
1 February                3 June                  1 October
1 March                    1 July                    1 November
1 April                       1 August               2 December

The first payment of the pension and rehabilitation allowance is made after the issuance of the decision

You will receive the first payment of your pension or benefit approximately one week after the decision has been issued or at the start of the commencement month stated in the decision. All subsequent payments will be on the first banking day of each month. You can check the next payment date via Elo’s Online Pension Service.

Did you know that there is an easy and convenient way to manage your pension and benefit matters online?

Elo’s Online Pension Service can be accessed whenever it’s most convenient for you.

Keltainen palkki


Manage your pension and rehabilitation matters online

In Elo’s Online Pension Service you can do the following:

    • Check the next payment date and tax percentage.
    • Inform about changes to an account number or contact information.
    • Increase your tax rate.
    • Print a pension certificate.
    • Order a new pension card.
    • Apply for reimbursement of travel expenses connected with vocational rehabilitation or for a pension accrued from work done alongside pension or a continued pension.
    • Take the paperless service into use, whereby you will have access to all documents concerning your pension or benefit directly through Elo’s Online Pension Service.


Pension taxation

Earnings-related pension is taxed as pension income, which differs from the taxation of wages or salary income in terms of deductions, for example.


Further information about pension taxation

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Taxation when your pension begins
 When you receive your pension decision, ask the tax authorities to calculate a withholding percentage for your pension income. For the calculation of the tax rate, you will need to provide the authorities with your pension decision as well as information about other forms of income and related withholdings. The tax authorities will send the tax card directly to Elo.

Altogether 40% tax will be withheld from your pension if your tax information is not available prior to the first pension payment. Any excessive withholding tax will be repaid to your account once Elo receives the tax card for your pension income as calculated by the tax authorities. The repayment of excessive taxes is, however, only possible as they relate to pension payments made during the current year.

Notification of the amount of pension paid during the tax year
You do not need to notify the tax authorities about any pensions paid to you. Elo handles that on your behalf at the end of each year. We send the same information to you by letter once a year or you can check it from Elo’s Online Pension Service >

Withholding tax in subsequent years
After the first year in which your pension is paid out, Elo will automatically receive your withholding percentage directly from the tax authorities. You will also receive the percentage information from the tax authorities for your own records. You will not need to submit your copy of the tax information to Elo.

Make sure to get your withholding percentage checked by the tax authorities if there are any changes to the amount of your pension or other forms of income.

 
Increasing the tax rate for your pension
You can increase the tax percentage for your pension if you wish to pay more than the withholding rate calculated by the tax authorities. Increase your tax rate in Elo’s Online Pension Service >

Working while receiving pension

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Working alongside old-age pension

You are free to work alongside old-age pension without any limitations. Your employment relationship must have ended, however, in order for you to begin receiving your pension.

 

Once you are receiving the pension, you can enter into a new employment relationship. If you continue to work for your previous employer while you are receiving your pension, you must change the terms and conditions of your work arrangement. You can, for example, change from full-time work to part-time work.

 

A self-employed person may, alongside old-age pension or early old-age pension, continue their entrepreneurial activities without restriction and the obligation to take YEL insurance or pay insurance contributions. If desired, a self-employed person can opt to take voluntary YEL insurance alongside the pension to earn additional pension for the continuing activities.

 

Work done alongside pension accrues pension at a rate of 1.5% per year. You can apply for this amount of additional accrual to be paid once you reach your highest pensionable age. The easiest way to apply for the additional accrual amount is through Elo’s Online Pension Service at www.elo.fi/elakepalvelu. Log in to the Online Pension Service using your personal online banking codes.


Working alongside partial early old-age pension

When you are receiving partial early old-age pension, you can but are not required to work alongside the pension. If you decide to work alongside partial early old-age pension, your employment relationship must be insured or, if you are self-employed, your YEL insurance must be valid.

 

Pension from work done alongside partial early old-age pension accrues at a rate of 1.7% per year for those under the age of 63 and 1.5% per year after reaching the age of 63. You will be required to apply separately for old-age pension after receiving partial early old-age pension.  Old-age pension can be applied for through Elo’s Online Pension Service at www.elo.fi/elakepalvelu. Log in to the Online Pension Service using your personal online banking codes.

Working alongside disability pension

You can work part-time alongside disability pension and partial disability pension. A recipient of the full disability pension can earn up to 40% of his/her earnings level prior to the pension period. For partial disability pension, the corresponding earnings limit is 60%. Elo will assist you in clarifying your monthly earnings limits.

 

The return to work of a disability pension recipient is facilitated by special legislation. Even if your individual earnings limit were smaller, you can always earn at least 784.52 euros per month (in 2019).

 

The pension payments can be suspended if your earnings exceed the earnings limitation for several consecutive months. The pension can be suspended for a minimum of three months and maximum of two years. After a period of suspension, you will start to receive the pension without a new assessment of your work ability if your work has ended or your earnings have dropped below the limit. Any pension that is suspended for more than two years will be discontinued. The conditions for suspension are monitored on a monthly basis.

 

If you begin working and your earnings exceed the earnings limit calculated for you, please notify Elo immediately in order to avoid the pension having to be suspended retroactively later on and for any unduly paid pension payments to be paid back. We also need to be informed when you work ends.

 

Contact us

Earnings monitoring for pension recipients (weekdays  8 a.m.–4:30 p.m.)

+358 (0)20 694706

 

Any entrepreneurial activities carried out alongside disability pension or partial disability pension must be insured under YEL if the conditions for insuring are otherwise fulfilled. The confirmed YEL income must not exceed your earnings limit.

 

Work done alongside pension accrues additional pension at a rate of 1.5% per year. You can apply for this amount of additional accrual to be paid when your pension changes to old-age pension provided that your gainful employment has ended. In any other case, the additional accrual amount is paid once your gainful employment ends.

 


Working alongside part-time pension

The total earnings for someone receiving a part-time pension can be a minimum of 35% and maximum of 70% of the previously established earnings from full-time work. The part-time pension decision states the exact earnings limits between which your earnings must remain while receiving the part-time pension. The earnings limits are adjusted annually in accordance with the relevant index.

 

A change in the earnings from part-time work may affect the amount of the part-time pension. The amount of the pension will be adjusted if the earnings change by more than 15%. In order to retain eligibility for the part-time pension, even after changes, the earnings must stay between 35 and 70% of the established earnings from full-time work. A self-employed person cannot change the YEL income while receiving the part-time pension. Part-time pension will be discontinued if the criteria for eligibility are no longer met. The pension can also be discontinued retroactively and, in this case, any unduly paid pension payments will need to be paid back.

 

Pension from earnings received alongside part-time pension accrues at a rate of 1.7% per year for those under the age of 63 and 1.5% per year after reaching the age of 63. Prior to the year 2017, any earnings paid alongside part-time pension accrued pension at a rate of 1.9% until the age of 63, when the accrual percentage increased to 4.5%.

 

If a recipient of part-time pension becomes incapable of working, he/she can be granted disability pension upon application. A separate application must also be submitted for old-age pension.


Recovery of unduly paid pensions

Any unduly paid pensions will, as a rule, be required to be paid back in full. Prior to the repayment process, the pension recipient has the opportunity to request reconsideration of the amount to be repaid on the basis of, for example, factors related to his/her financial situation.

 

If the decision is made to require the repayment of your pension, you can contact us and work out a payment plan. The amount to be repaid can be paid in one or multiple instalments or it can reduce the amount of currently paid pension or, if necessary, the amount will be collected through debt recovery. Remember, also, to contact Elo immediately if there is a need to adjust the agreed payment plan due to changes in your life situation.

 

Contact us

Earnings monitoring for pension recipients (weekdays 8 a.m.–4:30 p.m.)

+358 (0)20 694706

 

 

Receiving your pension abroad

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Pension payments when abroad
Earnings-related pension is paid regardless of the pension recipient’s country of residence and nationality to either a Finnish or foreign bank account. The pension is transferred to another country via a Finnish bank in the currency of the receiving country.
 
Tax is withheld from pension paid to a pension recipient in a foreign country. The amount of the tax withheld is affected by, among other things, the individual’s nationality and tax agreements.
Submit your foreign bank account number

If you want your pension paid to a bank account in a foreign bank, we will need the international IBAN account number and BIC code for the foreign bank in question.
 
Any payment information must also be submitted in writing, and the pension recipient must sign and mail the notification or return the relevant form via Elo’s Online Pension Service.


Moving abroad or returning to Finland

Always let us know of any changes in your contact information to ensure that the payment of your pension will continue uninterrupted. Moving between different countries may also affect your taxation.

Moving abroad

Earnings-related pension accrued in Finland can be paid to all countries regardless of the nationality of the pension recipient. This concerns both one’s own pension and survivors’ pension.

Tax will be withheld from the pension in accordance with the relevant tax agreements.

Notify us of your foreign address and payment information

If you move abroad, notify us of your foreign address and possible change in the payment information for your pension. If you have submitted a notification of a permanent change of address to the Finnish authorities, inform us also of your intended relocation date, since the move may affect the taxation of your pension.

The pension is transferred to the foreign country via a Finnish bank. In order to pay your pension, we will need the international IBAN account number assigned by the foreign bank and the bank’s BIC code. The pension is transferred abroad primarily in the currency of the receiving country or, if you wish, in euro.

In addition to notifying us of your intent to move abroad, you must also provide us with your contact information while abroad. It is important that we are able to reach you by mail to ensure that the payment of your pension can continue uninterrupted.

You can submit a notification of a change in address through Elo’s Online Pension Service. Log in to the service using your online banking codes at www.elo.fi/elakepalvelu.

Moving while abroad

If you relocate while abroad, you will need to submit a notification of a change in address to us. It is important that we are able to reach you by mail to ensure that the payment of your pension can continue uninterrupted. Moving from one foreign country to another may also affect the taxation of your pension.

Returning to Finland from abroad

If you permanently move back to Finland, notify us of your new address. The return to Finland from abroad may affect the taxation of your pension.

Anyone moving back to Finland must independently acquire a tax card for their pension. If you move back to Finland, you must acquire a tax card from the tax authorities as soon as possible for the payment of your pension. For the purposes of issuing a tax card, the tax authorities will need a report of all your income for the current year. You can get a certificate showing the amount of pension that has been paid to you during the current year from Elo’s Online Pension Service >

Submit your address details once per year

If you live abroad permanently, you must notify us of your address details once each year. We will send the residence notification form to those living abroad annually during December and January. Sign and return the residence notification to us, even if your address hasn’t changed during the past year.

The easiest way to return the residence notification is in Elo’s Online Pension Service using the attachment submission option.

If we do not receive your notification by the specified deadline, the pension payments will be suspended until we have received the notification.

Taxation of pension recipients living abroad

The taxation of earnings-related pension is affected by, for example, whether or not the relocation was permanent or temporary. Furthermore, taxation is affected by one’s nationality and the possible tax agreements of the target country.

When a Finnish citizen is moving abroad, an advance tax can be levied on his/her pension for the year of relocation and subsequent three years. During that period, you will, therefore, be taxed as if you were living in Finland. After this period, you are considered a Finnish tax nonresident with a limited tax liability. In this case, Elo will ask the Finnish tax authorities to provide a limited liability tax card for the payment of the pension.
 
On behalf of the pension recipient living abroad, Elo will apply for the withholding tax information for the pension payment at the commencement of the pension.
Further information about the taxation of pension while abroad can be requested from the tax authorities, tel. +358 (0)20 697 024 or website of the Finnish Tax Administration.

In accordance with Finnish legislation, Finnish pensions are taxable in Finland, even if the recipients live abroad.  Thus, the pensions of those living abroad are taxed in the same manner as the pensions of those living in Finland. The tax rate is determined based on the individual’s income amount.  Finland has a tax agreement with more than 60 other countries. Usually, the tax agreements specify that any pensions paid from Finland are taxed in Finland.

Taxation of benefits

When you receive the decision on rehabilitation, ask the tax authorities to calculate a withholding percentage for the rehabilitation benefit to be paid to you. The rehabilitation allowance and assistance are taxed as benefits, while the rehabilitation increase is taxes as pension income. For the calculation of the tax rate, you will need to provide the tax authorities with the decision regarding your benefit as well as information about other forms of income and related withholdings. Order a tax card from the tax authorities. The tax authorities will send the tax card directly to Elo.

Altogether 40 % tax will be withheld from your benefit if your tax information is not available prior to the first payment. Any excessive withholding tax will be returned/paid to your account (within approx. one week), once Elo receives the tax card calculated by the tax authorities. The repayment of excessive taxes is, however, only possible as they relate to benefits paid during the current year.

Cost reimbursements, such as compensation for travel and accommodation expenses are tax exempt and are not considered in the taxation.


Instructions for students receiving vocational rehabilitation

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At the start of the studies

Submit a study certificate

 

Submit a study certificate to Elo at the start of your studies. We can only begin paying the rehabilitation benefit once we have received the study certificate. The easiest way to submit the certificate is using the attachment submission option available in Elo’s Online Pension Service www.elo.fi/elakepalvelu.

 

Travel reimbursement

 

You can receive compensation for certain travel expenses related to vocational rehabilitation. Further information about travel reimbursements is available from TELA (in Finnish) >

 

You can apply for travel reimbursements online at www.elo.fi/elakepalvelu. Log in to the Online Pension Service using your personal online banking codes.

 

Reimbursement for the costs of living outside your home municipality

 

Some rehabilitees will have extra living expenses as a result of having a residence both in their home municipality and the municipality in which their rehabilitation takes place. In these cases, the additional expenses will be reimbursed, during the months of active rehabilitation, in the form of a partial daily allowance provided in accordance with the decision issued by the Tax Administration on the tax-exempt compensations for business travel. The reimbursements can be applied for through Elo’s Online Pension Service at www.elo.fi/elakepalvelu. Log in to the service using your personal online banking codes. A document detailing your additional expenses and a copy of your rental agreement must be attached to your application.

 

Standard compensation

Elo reimburses expenses from studies that lead to a qualification or degree in accordance with TELA’s reimbursement recommendations (in Finnish only) >. Before we can pay the reimbursement, we will need to receive a study certificate, which you can submit using the attachment submission option available in Elo’s Online Pension Service. Log in to the service using your personal online banking codes at www.elo.fi/elakepalvelu. The payment of the reimbursement will be made separately for the spring and autumn terms.

 

Discontinued or delayed studies

Please contact an Elo rehabilitation expert if your studies are discontinued or delayed. Any unduly paid benefits may be recovered from you.

 

Apprenticeship

An apprenticeship will always be agreed on with the local apprenticeship agency. At the start of the apprenticeship, submit to Elo a copy of your employment contract, apprenticeship agreement and a study certificate from the educational institution in question. The guidelines regarding students are generally applicable to apprenticeship training.

 

Working while studying

You can work while studying as long as you stay within the relevant earnings limits. Your personal earnings limits are stated in the decision concerning your rehabilitation benefit.


Student’s checklist for January

Remember to submit the following to Elo:

  • Study certificate
  • New tax card.




Subsistence during the summer

Elo also pays rehabilitation benefits during the holiday months. We recommend that the holiday period be used for studies or practical training.

 

Submit a study certificate to Elo for the payment of the benefit and cost reimbursements. You can submit the study certificate using the attachment submission option available in Elo’s Online Pension Service. Log in to the service using your personal online banking codes at www.elo.fi/elakepalvelu.

The benefit is paid for the autumn term once we have received a new study certificate. We will also pay the cost reimbursement based on the same certificate.


Graduation

Congratulations on your graduation! Now it’s time for you to enter working life.

Remember to submit your qualification or degree certificate to Elo using the attachment submission option available in Elo’s Online Pension Service atwww.elo.fi/elakepalvelu. Log in to the service using your personal online banking codes.


Manage your pension and benefit matters and keep your information up-to-date

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Change of bank account
Your pension or benefit is paid to the account that you have submitted in your application. In order to ensure data protection, we cannot receive any account number changes by phone or email. If you want to change the account to which your pension or benefit is paid, the easiest way is to do it online through Elo’s Online Pension Service.    
Pension certificate
You may need a certificate showing the amount of your pension and pensions paid, for example, when handling matters at the tax office. A certificate with your pension amount can be printed from Elo’s Online Pension Service.

 
Changes in contact information
If your address, email address or phone number change, you can submit a notification of change in Elo’s Online Pension Service under the Personal information tab. While logged in, you can also choose to take the paperless service into use, whereby you will have direct access to all future pension documents in Elo’s Online Pension Service.
Pension card
For those who have received a decision concerning old-age pension and disability pension, the pension card will be sent to their home within two weeks. The pension card is not granted to those receiving a rehabilitation subsidy, partial disability pension, part-time pension, partial early old-age pension or survivors’ pension.

To get any discounts granted for pensioners, remember to show your pension card when purchasing products and services. The pension card serves as proof of your pensioner status, also when abroad.

If you lose the card, you can order a new one through Elo’s Online Pension Service.

Elo is here to help and support you

Elo's Online Pension Service enables you to manage your pension and benefit matters whenever it’s most convenient for you. For pension and benefit matters, please call us at +358 (0)20 694 717 (weekdays 8 a.m.–4:30 p.m.)