Funded pension (II pillar)
The funded pension (II pillar) is an employee choice: a contribution of 2% (the default), 4% or 6%, or 0% if the employee has not joined. It is withheld from the gross salary and excluded from the income-tax base. The rates shown are those in force for 2026.
What the II pillar is
The funded pension (kogumispension), commonly called the second pillar or II sammas, is a personal retirement pot built from a slice of your own salary while you work. Unlike the employer social tax, which is paid over for everyone, the funded pension is an employee choice: you decide the rate, the money is withheld from your gross pay, and it accumulates in an account in your name. The rates shown here are those in force for 2026.
Your rate: 2%, 4% or 6%
The standard contribution is 2% of the gross — the default for anyone who has joined the pillar. Following the 2024 reform you may also elect to pay more: with an application to the registrar you can raise your rate to 4% or 6% for the 2025–2026 window, putting a larger share of each salary aside. If you have not joined the II pillar at all, nothing is withheld for it and only income tax and the unemployment contribution come off your gross. The calculator lets you switch between the rates so you can compare them side by side.
How the rate affects your net pay and tax
Because the contribution is withheld from the gross, a higher rate lowers your immediate take-home pay — more of the salary is being saved rather than paid out. That effect is softened by the tax treatment: the funded-pension contribution is excluded from the income-tax base, so a larger contribution also means slightly less 22% income tax. The net cost of moving up a rate is therefore smaller than the headline percentage, and the calculator shows the exact figures the moment you change the rate.
The state’s share
Your contribution is not the whole story: the state adds a top-up to the pillar alongside your own payment. That top-up is funded from within the 33% social tax your employer already pays, not charged as an extra levy on top of it. The precise statute references for the II-pillar rules — the opt-up window and the exclusion from the income-tax base — are still open, so this page states the rules without citing a specific provision as fact. The rates shown are those in force for 2026.