In the future, all employees will pay the same amount in pension contribution – in 2026, it is 7.3 per cent of their wage
The employee pension contribution is being standardised from 2026. In the future, all employees will pay the same amount in pension contribution, regardless of age. In 2026, the basic employee contribution is 7.3 per cent of their wage.
Currently and in previous years, employees aged 53 to 62 have paid a higher pension contribution than other age groups. Similarly, their pension has accrued at a higher rate. As of next year, age will no longer affect the size of the pension contribution.
As of the beginning of 2026, all employees aged 17 to 69 will pay the same contribution.
Changes to pension contributions in different age groups in 2025–2026:
- Under 53-year-olds: the contribution rises from 7.15% to 7.3%
- 53–62-year-olds: the contribution reduces from 8.65% to 7.3%
- Over 62-year-olds: the contribution rises from 7.15% to 7.3%
The rate at which pension accrues will also become uniform across all age groups, set at 1.5% of the wage. Previously, employees aged between 53 and 62 years accrued pension at a higher rate of 1.7% of the wage.
This change stems from the 2017 pension reform, which stipulated that age-based contributions would be abolished by the end of 2025.
The abolishment of age-based contributions will also affect the pension contributions of the self-employed. In 2026, the YEL contribution for the self-employed will be 24.4%. This year, the rates have been 24.1% and 25.6% (for those aged 53–62). Taking into account the discount granted to newly self-employed persons, the average YEL contribution is estimated at 23.1%.
More news