Earnings-related pension insurance contributions for 2026 confirmed
The Ministry for Social Affairs and Health has confirmed the earnings-related pension insurance contributions for 2026. The average contribution for employer’s pension insurance (TyEL) is 24.4 per cent of the payroll in 2026.
The TyEL contribution is on average 24.4%, i.e. it will remain the same as the actual contribution in 2025. In 2025 in addition to the actual contribution, employers have been charged the fourth, i.e. the last repayment (0.45%), of the temporary employer contribution reduction in 2020.
The average pension contribution describes the general contribution level and gives a big picture of the differences between the years.
In the 2025 pension reform, it has been agreed that the average contribution (TyEL) on private sectors will be stabilised at 24.4% of the payroll for 2026–2030.
How is the TyEL contribution determined?
The TyEL contribution is divided into the employee’s and the employer’s share. In 2026, the increased contribution for employees aged 53–62 will be removed and the contribution will be the same for employees of all ages, at 7.30 per cent of the payroll. Employer’s contribution will be average 17.10 per cent of the payroll next year.
For small contract employers, the earnings-related pension insurance contribution will be a maximum of about 25.03 per cent of the payroll at Ilmarinen, when the expense loading is taken into account. A small employer is a person who has paid under €2,455,500 in wages in 2024.
Next year, the TyEL contribution by temporary employers will be 25.85 per cent of the payroll. A temporary employer’s contribution is the same in all pension companies.
You can check your insurance contribution percentage in our online service.
Ilmarinen’s administrative cost in 2026
In 2026, the administrative costs of Ilmarinen’s customers will be no more than 0.18 per cent of the payroll. The level of administrative costs included in our customers’ TyEL contributions will remain the same for some customers, while for the majority it will go down.
Our cost-effectiveness continues to guarantee affordable TyEL
Reforms in the contribution category model - see what changes in 2026
The contribution category model will be subject to previously agreed reforms, which will affect the TyEL contribution of the largest employers. As a result of the reforms, the weight of the contribution category in determining the disability contribution will decrease further in 2026. At the same time, the average disability contribution rises from 0.7% to 0.8% of wages.
Due to these changes, the effect of the contribution category on the individual employer's contribution will remain almost unchanged in 2026 if the employer's contribution category does not change.
These changes are reflected in our customers' payment estimates, which you can see in our online service.
The contribution for self-employed persons
In 2026, the increased pension contribution for self-employed persons aged 53–62 will be removed and the YEL contribution will be 24.4% of the confirmed work income for all. In 2025, the pension contribution for self-employed persons is 24.10% of the confirmed work income for persons under the age of 53 and over 62 and 25.60% for persons aged 53 to 62.
The YEL income is automatically adjusted annually with the wage coefficient. The wage coefficient will raise the YEL income by 2.3 per cent next year.
Insurance contribution interest rate 2026
The insurance contribution interest is part of the insurance contribution. The interest rate on earnings-related pension insurance will increase at the start of 2026 to 2.2 per cent (this year 2.10 per cent between July 1st and December 31st).
The TyEL insurance contribution will fall due on the last day of the month following the date on which the salaries or wages were paid. If you defer the TyEL contribution due date, insurance contribution interest will be added to it.
Read more about TyEL contribution due dates
The insurance contribution interest rate also impacts the YEL contribution depending on the date of payment and instalment months. The YEL contribution can be paid in several instalments. The contribution is either credited or debited with interest according to whether you pay early or late in the year. The least expensive option is to pay the YEL contribution on 20 January.
Read more about YEL contribution due dates
The upper age limits for TyEL and YEL insurance will change in 2026
The obligation to take out TyEL and YEL insurance has thus far ended at the end of the calendar month in which the person turns 68. However, from the beginning of 2026 this will change: for those born in 1958 and thereafter, the obligation to insure will continue even after they have reached the age of 68, and they will continue to accumulate pension.
Read more
2026 earnings-related pension index and wage coefficient confirmed
Current topics
The increased pension contribution and the higher accrual rate for employees aged 53–62 will be eliminated in 2026. From the beginning of the year, the contribution will be the same for employees of all ages: 7.30 per cent of the wage, regardless of age.
The upper age limits for TyEL and YEL insurance will change in 2026
The 2017 pension reform set an upper age limit for TyEL and YEL insurance based on the year of birth. The change will have an impact from the beginning of 2026, when those born in 1958 and younger are insured and will continue to accrue pensions in 2026.
EPSI Rating: Ilmarinen has the most satisfied customers in the pension sector
Ilmarinen’s customers are the most satisfied in the earnings-related pension industry, shows a recent study by EPSI Rating.