Finnish public sector pension contributions will be reduced by 0.4 percentage points in 2025 to 26.75 per cent, Keva has revealed.

The decrease is a consequence of the decision by Keva's councillors to further reduce the equalisation levy for municipalities and welfare regions next year. The total level of the equalisation levy will be €577m, which is €55m lower than in 2024.

It is the ninth consecutive year in a row that the pension contribution will decrease. Keva said the overall financial situation of the pension scheme of Keva's member entities is better than a year earlier, based on current data and assumptions.

Commenting, Keva CEO, Jaakko Kiander, said: “The improved outlook for the financial position is mainly due to an increased reserve and expected wage growth in the coming years. Keva's estimated financial position has improved since the mid-2010s, which has also been reflected in the contribution level, which has decreased since 2016.”

Contributions paid by Keva's member companies consist of a payroll-based pension contribution paid by all member companies and an equalisation contribution paid by the municipalities and welfare regions.

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