News 22.8.2025

Ilmarinen’s cost-effectiveness continues to guarantee our customers affordable TyEL contributions

In 2026, the administrative costs of Ilmarinen’s customers will be no more than 0.18 per cent of the payroll. We have made our operations more efficient every year, which means that Ilmarinen’s customers can continue enjoying affordable TyEL contributions when it comes to the administrative cost. The administrative cost is part of the TyEL insurance contribution.

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.

Administrative costs will go down for the majority of the smallest customers

Administrative costs will go down in 2026 in particular for smaller employers who employ staff occasionally. The reducing administrative costs will apply to a large proportion of Ilmarinen’s customers. Our smallest employer customers will see the largest reduction in administrative costs.

How is the price of pension contribution determined?

In addition to the common TyEL contribution for the entire sector, the price of the pension insurance is affected by the administrative cost and client bonus specific to the pension insurance company. The cost-effectiveness of Ilmarinen’s operations has continued to improve, and our administrative expenses have decreased.

The client bonus, on the other hand, is paid back to the customers annually in the form of discounted insurance contributions.  Our robust solvency ensures that we can offer competitive customer bonuses.

Read more about how the TyEL contribution is determined

As part of the Pension reform, it has been agreed that the average contribution (the TyEL contribution) applicable to the private sector will be fixed at 24.4 per cent between 2026 and 2030.

The new Pension reform has been agreed (in Finnish)

Administrative costs are used to cover the operating costs of the pension company

The administrative cost is the part of the pension contribution that is used to cover a pension company’s operating costs. It means that the more cost effective our operations are, the smaller our administrative expenses and, consequently, our customers’ TyEL insurance contributions are.

Ilmarinen has reduced the annual costs of managing pension insurance by a third, or almost EUR 50 million, since 2018. As a result, our customers’ TyEL contributions are still affordable in terms of the administrative costs.

The impact of the administrative cost on the pension contribution is rather modest. For Ilmarinen’s customers in 2026, it will be no more than 0.18 per cent of the payroll.

Calculate an estimate of your contribution online

We will provide news about the 2026 contributions during the autumn. The Ministry of Social Affairs and Health will confirm other aspects of the pension contributions for the following year by mid-November.

You can see an estimate of your insurance contribution rate in our online service. Customer-specific contribution estimates for 2026 will be specified during the autumn.

Read more

• Return on Ilmarinen’s investments was 2.1 per cent – solvency was strong and cost-effectiveness at a good level
• Ilmarinen and MYRY start cooperation – aim is to better support and secure micro and solo entrepreneurs

Read also

• Earnings-related pension contributions i.e. TyEL contributions
• The TyEL contribution and contribution category for large employers