Finnish government reaches preliminary agreement on entrepreneur pension reform

The Finnish government has reached a preliminary agreement on reforms to the entrepreneur pension system that would reduce contributions for low-income self-employed workers, according to public broadcaster Yle. The final decision will be made during next week’s budget framework negotiations.

Under the proposed model, entrepreneurs would gain greater flexibility in determining their pension contributions, with payments based either on estimated or actual earnings. Currently, contributions are calculated on assessed work income, which has led to disproportionately high costs for many small business owners.

Yle’s sources across coalition parties indicate the reform would increase state pension costs by approximately €80 million annually by 2030. While minor adjustments remain possible due to budget constraints, major changes are considered unlikely. The state already allocates nearly €600 million this year to cover entrepreneur pensions.

The reform aims to lower contributions particularly for low-earning and startup entrepreneurs. For high earners whose assessed income is significantly below actual earnings, contributions would rise. The majority of entrepreneurs would see either reduced or unchanged payments.

Social Affairs Minister Sanni Grahn-Laasonen (National Coalition Party) has emphasized improving conditions for entrepreneurship as the reform’s core objective. The government’s budget negotiations are scheduled for Tuesday and Wednesday next week.