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Funded pension (2nd pillar) 2026

The 2nd pillar funded pension is retirement saving collected from the employee's salary. The employee contribution is 2%, 4% or 6% of gross salary and it is withheld before income tax.

How much goes into the 2nd pillar?

The standard employee contribution is 2% of gross salary, but since 2025 one can also choose 4% or 6%. The state adds 4% of gross salary from the employee's social tax. The higher the contribution, the smaller the net salary today, but the larger the pension saving. Compare the rates in the salary calculator (the 2nd pillar field).

2nd pillar contributions in 2026

PayerRate
Employee (optional)2%, 4% or 6%
State (from social tax)4%

Effect on net salary

Because the 2nd pillar contribution is deducted before income tax, a higher rate reduces net salary slightly less than the nominal amount of the contribution. The exact difference between rates is shown by the salary calculator.

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Source: Estonian Pension Centre ↗