Employees’ earnings rose by more than 4 per cent in 2023
Employees’ median monthly earnings were 3,105 euros in 2023, an increase of 4.1 per cent from 2022. Men's median monthly earnings were over 3,400 euros and women's over 2,800 euros, according to the Finnish Centre for Pensions’ fresh statistics on wages insured for earnings-related pensions.
In 2023, nearly 3 million people in Finland accrued earnings-related pensions based on earnings from work and incomes from self-employment. Of them, 2.7 million worked as employees and 287,000 as self-employed persons insured under the Self-employed Persons’ Pensions Act (YEL) or the Farmers’ Pensions Act (MYEL).
According to statistics of the Finnish Centre for Pensions, employees’ average monthly insured earnings in 2023 were 3,425 euros and median earnings 3,105 euros. Women’s median monthly earnings were 17 per cent lower than men’s.
For self-employed persons insured under YEL and MYEL, the average earned income that accumulated pension was 1,922 euros and the median 1,410 euros per month.
“For the self-employed, YEL income peaked at the end of their career, over the age of 60. Among the age groups, the highest monthly earnings are for employees aged 45 to 49. They had a median income of 3,779 euros per month last year”, statistician Marjo Kaasila explains.
As of the beginning of 2005, earnings-related pension has also accrued from certain unsalaried periods, including periods of childcare, studies leading to a degree, and spells of unemployment and illness. Receiving a pension accrued during unsalaried periods requires a pension based on employment.
In 2023, pension benefits for unsalaried periods were registered to nearluy one million persons.
Significant increase in the municipal sector
Employees’ average monthly insured earnings in 2023 rose by 3.5 per cent and their median monthly insured earnings by 4.1 per cent compared to 2022. According to Statistics Finland, the average annual change in consumer prices, that is, inflation, was 6.2 per cent in 2023. In other words, earnings lagged behind prices. The average income level for women increased more than for men.
The change was more significant in the public sector: the average monthly income increased by 4.7 per cent and the median income by 5.6 per cent. For private sector employees, the corresponding percentages were 3.0 and 3.4.
“In the public sector, earnings rose briskly in the municipal sector, where median earnings increased by 6 per cent. In the state sector, the increase was much more moderate, with the median earnings rising by 3.9 per cent”, explains development manager Jari Kannisto (Finnish Centre for Pensions).
Higher earnings than other wage earners in the municipal sector are mainly explained by increases in the wage programme in the municipal sector and by the harmonisation of wages carried out in connection with the formation of wellbeing services counties. The wellbeing services counties were formed on 1 January 2023 and are included in the statistics in the same group as the municipalities.
The average monthly earnings of YEL-insured persons rose by 4.1 per cent compared to 2022. The median monthly income grew by 8.4 per cent.
Statistics also account for irregular earnings
The statistics released by the Finnish Centre for Pensions are based on earnings insured under the earnings-related pension scheme. They include all insured earnings, including irregular and part-time earnings. Finnish earnings-related pensions are determined based on these insured earnings.
Statistics Finland publishes structural statistics on earnings in Finland. According to Statistics Finland, the average total gross monthly earnings of full-time employees in Finland in 2023 were 4,007 euros. The median monthly earnings were 3,564 euros.
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