Take their own retirement forties is very important because in the future state pensions compared to income achieved before retirement is lower than it is now. Among the most popular financial products to ensure that retired between citizens include pension and supplementary pension savings. These products are supported not only by the state in the form of monthly state contribution and tax deduction opportunities, but also the tax exemption for employer contributions to an agreement. "Since this year has increased the annual limit for tax exemption from CZK 30 000 to 50 000 CZK," says Emil Brož (FinFocus).
For contribution to the limit to pay taxes
From the increased gross wage the employee must pay tax on personal income tax, social insurance and health insurance. The employer's contribution to a contract employee supplementary pension insurance and supplementary pension savings to the statutory limit of CZK 50 000 is exempt from personal income tax, social and health insurance. Said limit applies to the aggregate annual employer contributions to one employee at the state-supported products, which also include life insurance. "The depletion of tax-exempt employer's contribution agreement for employers and employees in tax terms more advantageous to increase the monthly payment on the contract than the gross wage," explains Emil Brož.
Now is the perfect time
At the same time, favorable economic situation, companies are looking for a way to better reward and motivate their employees. Given the low unemployment rate and high number of vacancies in the labor market is not performing employees currently a problem to go to the competition. Increase in the employer contribution to the supplementary pension insurance contract or supplementary pension savings is fiscally attractive way to increase workers monthly income.
How much tax will swallow?
By increasing the gross salary of 1,000 CZK will increase wage costs employers about 1340 CZK, because of the gross wage employers must pay compulsory social insurance in the amount of 25% of the employee's gross salary and compulsory health insurance in the amount of 9% of the employee's gross salary. If the calculation of net wages of employees before increasing gross wages were already exhausted all of the tax rebates, then from the increased gross wage in the amount of CZK 1 000 discharged employee income tax of individuals CZK 210 social insurance in the amount of CZK 65 and health insurance in the amount of 45 CZK. Thus, the net wage rises only 680 CZK instead of 1000 CZK.
Can only conclude additional pension savings
All legislative benefits are the same for pension insurance and supplementary pension savings. Currently, it is possible to conclude a new agreement only on supplementary pension savings. Supplementary pension insurance contract could be concluded only by the end of November 2012. In the supplementary pension is guaranteed a non-negative assessment, but it also means a very conservative investment. For supplementary pension savings can choose the investment strategy, which can achieve interesting improvements. "People having closed pension funds, who want to invest more dynamic, they can" convert "their agreement on supplementary pension insurance contract on supplementary pension savings, it is a simple administrative matter, which is particularly useful for younger people who are saving for retirement yet a longer period. Supplementary pension saving is also less expensive to manage than pension funds, "says Emil Brož.
Source: tz, edited,