My pension

A contribution to the funded pension consists of two components:

• The withholding from salary, which constitutes 2% of the employee’s monthly gross salary. It shall be withheld by the employer’s accountant
• The payment made by the state out of the social tax paid by the employee; the contribution made by the employer is 4% of the employee’s monthly gross salary. Thus the state retains 33%-4%= 29% of the social tax. The 4% of the social tax is added to the 2% paid by the employee by the Tax Board.

Example: If an employee earns a gross salary of €1,000 per month, he or she will pay 2% or €20 per month to his or her pension account if they subscribe to a funded pension. The state will add another 4% or €40, which means that in total, €60 per month will transfer to the employee’s pension account.

Although the contributions to the funded pension will be withheld by the employer, the actual payer is still the employee. It means that the contributions are not connected to the employer and change of employer will not prevent or affect saving for the funded pension.

NB! Contributions can be made only to one selected fund at a time.

Changes of 2nd pillar pension contributions

From 15 May until 15 September 2013 an application for increasing the payments could have been submitted.

From 1 June 2009 until 31 December 2010 the state contributions to the mandatory funded pension were suspended. Those who wanted to continue personal contribution payments had to submit an application between 01 August 2009 and 30 November 2009.

Exclusion was made for person’s who were born during 1942-1954, by submitting application for continuing the contributions they could continue to make payments according to usual scheme (2%+4%).

Since 01.01.2011 the contributions to ded pension were resumed partly. Since 01.01.2012 contributions were resumed fully – 2% of gross salary + 4% added by state out of the current social tax paid by you today.