Employment in retirement

It is possible to work while retired. Please note, however, that any earnings or self-employment income will affect the payment of the disability or unemployment pension you may receive as well as the housing allowance for pension and the taxation of pensions.

Recipients of an old-age pension

Recipients of an old-age pension can work without restrictions, but the income they earn affects the taxation of their pension and any housing allowance to which they are entitled.

Recipients of a disability pension

Any earnings or self-employment income affects the payment of disability pensions, the housing allowance for pensioners, and the taxation of pensions.

If you are paid a disability pension, you are permitted a small amount of paid employment. If you start work, contact Kela and your earnings-related pension provider. Kela will continue to pay you a disability pension if your earnings before taxes do not exceed €733.80 per month.

If Kela pays you a full disability pension and you start work, with the result that you are no longer eligible for the pension because you earn more at least €733.80 per month, you can set aside your pension for a period ranging between three months and two years. In addition to your salary, you can be paid a benefit equal to the highest rate of the disability allowance (€417.68 per month) if you set aside your pension and were being paid care allowance for pensioners when you did so. Working for two months, for example, will not stop the payment of your pension. Kela can treat it as a job trial period.

Recipients of an unemployment pension

Any earnings or self-employment income affects the payment of unemployment pensions, the housing allowance for pensioners, and the taxation of pensions.

If you are paid an unemployment pension, you are permitted only a very small amount of paid employment. If you earn more than €694.83 per month or if you decline a job offered by the employment office that would last at least a month, Kela will stop the payment of your pension.

Notify if you start work

If you receive a disability or unemployment pension, you must notify Kela and your earnings-related pension provider if you start work. While there are forms that you can use for this purpose, you can also give the notification in your own words, but you must do so in writing. It is a good idea to attach a copy of your employment contract or a wage slip with your notification.

Updated 01/07/13