In Finland , the pension provision consists mainly of employment-based earnings-related pension and the national pension, which provides a minimum income. The schemes secure an income in the event of old age, incapacity for work, death of the family breadwinner and aging persons' unemployment. Almost all gainful employment is covered by the pension provision. There are separate pension acts for private-sector employees, self-employed persons, farmers, seamen and public-sector employees. Earnings-related pension provision is financed jointly by the employers and the employees. The national pensions are financed through employer contributions and tax revenues.
The length of the employment contract has no significance. The obligation to take out insurance also concerns private households when they act as employers. For entrepreneurs, the obligation to take out insurance starts when self-employment has continued for four months. The self-employed person's insurance contributions are based on the confirmed income from self-employment and not for instance on the company's turnover. The Finnish Centre for Pensions supervises both employers and self-employed persons, and uses sanctions when needed.
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