Finland will introduce a major overhaul of its earnings-related pension system in 2026, with contribution rates becoming fully uniform across all age groups.

The change marks the final stage of the country’s 2017 pension reform, which required the removal of age-based pension contributions by the end of 2025.

From 1 January 2026, all employees aged 17-69 will pay the same contribution rate of 7.3 per cent of their wage, ending the long-standing practice under which employees aged 53-62 contributed at a higher level and accrued pension at a faster rate.

Currently, workers under 53 and those over 62 pay 7.15 per cent, while those in the 53–62 bracket pay 8.65 per cent.

The rate at which pension accrues will also become uniform across all age groups, set at 1.5 per cent of salary. Previously, employees aged 53-62 years accrued pension at a higher rate of 1.7 per cent of their salary.

The self-employed will also see their pension contributions aligned. The YEL contribution rate will be set at 24.4 per cent for all self-employed persons in 2026, replacing this year’s age-dependent rates of 24.1 per cent for younger workers and 25.6 per cent for those aged 53–62.

With the discount available to new entrepreneurs, the average effective YEL contribution is expected to be around 23.1 per cent.

Alongside the changes to private-sector contributions, Finland’s public-sector pension provider Keva has confirmed that contribution levels for municipalities and welfare regions will fall in 2026.

At a meeting on 21 November 2025, Keva’s representatives agreed to reduce the equalisation payment collected from municipalities and welfare regions to €553m - €24m less than in 2025. The Ministry of Finance is expected to confirm the decision in accordance with the Keva Act.

In addition, salary-based pension contributions for Keva’s member organisations will remain aligned with the private-sector TyEL contribution of 7.3 per cent for employees.

For the state, the employer contribution will mirror the levels applied to Keva’s member organisations, pending confirmation by the Ministry of Finance.

In the church sector, the Evangelical Lutheran Church decided on 5 November 2025 to maintain its salary-based pension contributions at current levels for 2026.

Parishes will continue to pay 28.7 per cent of salaries, while the Church Central Fund and Church Association will pay 34.5 per cent. These amounts include the employee’s 7.3 per cent pension contribution. The pension fund contribution, based on parish church tax revenue, will remain at 5 per cent.

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