Mandatory funded pension payment

The mandatory funded pension payment is a payment calculated from employees’ income, which is used for funding the second pillar pension. As an employer, you have to withhold a funded pension payment and pay it to the Tax and Customs Board. Since not all employees have joined the funded pension, you will have to check with the Pension Centre. to make sure that a funded pension agreement exists.

The tax rate is 2% of taxable payments. Withheld payments must be paid to an employee by the 10th of the month following the month of the disbursement.

Last amended: 02-01-2018 11:41 | Compiled by: Tax and Customs Board