Finland’s central labour market organisations have approved a proposal setting the earnings-related pension (TyEL) contribution in the private sector at 24.4 per cent of salaries for 2026, a decrease of 0.45 per cent, marking the end of the transitional contribution structure introduced under the 2017 pension reform.

Under the proposal, which was approved on 6 October 2025, the average employer contribution will be 17.1 per cent, while the employee contribution will be 7.3 per cent for all age groups.

The new employee rate brings to an end the differentiated employee contribution rates that have been in place for workers aged 53-62 since the 2017 pension reform, which aimed to modernise Finland’s pension system and ensure intergenerational fairness while maintaining sustainability.

During this period, employees aged 53-62 contributed 1.5 percentage points more than younger or older workers, but also accrued pension benefits at a higher rate of 1.7 per cent instead of 1.5 per cent.

From 2026 onwards, all employees will accrue a pension at a uniform rate of 1.5 per cent, and all will pay the same 7.3 per cent contribution.

This will slightly reduce contributions for those aged 53–62 and marginally increase them for those under 53 and over 63 compared with 2025 levels.

The changes also apply to the self-employed, whose YEL (entrepreneurs’) pension contribution will remain at roughly the same average level as in 2025.

The end of the age-based contribution differences will have a similar levelling effect, lowering contributions for those in the 53–62 age bracket and increasing them for younger and older entrepreneurs.

Between 2022 and 2025, private-sector employers have also been repaying the temporary contribution reduction granted in 2020 to ease the financial impact of the Covid-19 pandemic.

Taking this repayment item into account, the total TyEL contribution level in 2025 stood at 24.85 per cent.

The repayment requirement will end this year, as scheduled, with the Finnish Centre for Pensions confirming that the temporary reduction will have been fully repaid.

The Finnish Ministry of Social Affairs and Health will formally establish the basis for the 2026 earnings-related pension insurance contribution later in October, following applications from pension insurance companies, with the new structure set to take effect on 1 January 2026.

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