Automatic Enrolment, developed to bolster the savings that employees will need during their retirement, has become effective as of January 1, 2017. With this application, a Private Pension Automatic Enrolment account has been opened for public/private sector employees registered with the Social Security Institution (SGK), working at a workplace, and below 45 years of age.
The amount of contribution determined by the Social Security Institution, corresponding to 3% of your taxable base for premiums, is transferred to your Private Pension System Automatic Enrolment Account until the end of the working day following the day on which your salary is deposited. On the other hand, the 25% state contribution applies to the Automatic Private Pension System as well. In a calendar year, State Support worth up to 25% of annual gross minimum wage is attainable. In Automatic Private Pension System, the amount of state support that an employee is eligible for is not affected in the event of an existing private pension contract. In this case, an employee receives separate state contributions from both the Automatic Private Pension System contract and the existing private pension contracts, thereby benefiting more from the system’s state contribution advantage.