The central labour market organisations have reviewed a proposal concerning the earnings-related pension contributions for 2026. The earnings-related pension companies will request the Ministry of Social Affairs and Health to confirm the proposed criteria for earnings-related pension contributions.
According to the proposal, the TyEL basic contribution of contract employers will be 24.85% of their payroll next year. An expense loading fee specific to each pension provider will be added to the basic contribution. The contribution is reduced by client bonuses based on the solvency of the pension insurance company.
“Between 2022 and 2025, employers were charged an increased TyEL contribution, which was used to repay the reduction in TyEL contributions granted to employers during the COVID-19 pandemic. The repayment has now been completed, so from next year onwards, no increased contribution will be charged,” says Teppo Rakkolainen, Chief Actuary at Veritas.
The second change concerns the pension contribution of employees 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 percent of their annual earnings. 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.”
Next year, the employee’s share of the TyEL contribution will be 7.30 percent of their salary. The contribution for entrepreneurs will be 24.40 percent of the confirmed YEL income.
Proposal for TyEL contributions in 2026
- The TyEL basic contribution of contract employers, without the expense loading fee, is 24.85% of the payroll (25.28% in 2025).
- The TyEL insurance contribution of occasional employers is 25.85% of the payroll (26.28% in 2025).
- The TyEL component for employees is 7.30%.
Proposal for YEL contributions in 2026
- The contribution for entrepreneurs is 24.40% of the confirmed YEL income.
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