The Ministry of Social Affairs and Health has confirmed the TyEL and YEL contributions for 2026.
Next year, the basic TyEL contribution of contract employers will be 24.85 per cent of the employees’ wages. The basic contribution also includes a pension provider-specific administrative cost contribution. The TyEL contribution is reduced by client bonuses based on the solvency of the pension insurance company.
“Between 2022 and 2025, employers were charged a higher TyEL contribution to compensate for the temporary reduction in employer TyEL contributions granted during the COVID-19 pandemic. The repayment has now been completed, which means that the higher contribution will no longer be collected as of next year,” says Teppo Rakkolainen, Chief Actuary at Veritas.
If a company’s payroll was a minimum of EUR 2,455,500 in 2024, the insurance contribution will also be affected by the contribution category and the contribution loss discount.
Contract employers can check their overall TyEL contribution percentage from Veritas’ online service.
Changes in pension contributions for employees and entrepreneurs
The second change concerns the pension contribution of employees and entrepreneurs aged 53 to 62. In the 2017 pension reform, it was agreed that employees in this age group would accrue an earnings-related pension at a rate of 1.7 per cent of their annual earnings over a 10-year transition period. Due to the higher pension accrual, employees aged 53 to 62 have also paid a higher earnings-related pension contribution.
“From next year onwards, all employees and entrepreneurs will have the same contribution rate regardless of age, and will accrue the same amount of pension, namely 1.5 percent of their annual earnings.”
TyEL contributions in 2026
- The basic TyEL contribution for contract employers, without the administrative cost contribution, is 24.85 per cent of wages (25.28 per cent in 2025).
- The TyEL contribution for temporary employers is 25.85 per cent of wages (26.28 per cent in 2025).
- The TyEL contribution for employees is 7.30 per cent (in 2025: 7.15 per cent for employees under 53 and over 62 and 8.65 per cent for those aged 53–62).
YEL contributions in 2026
- The YEL contribution is 24.40 per cent of the confirmed YEL income (in 2025: 24.10 per cent for entrepreneurs under 53 and over 62 and 25.60 per cent for those aged 53–62).
