Do you consider awarding your employees’ loyalty to the firm important in the long term?
If yes, you now have the chance to do this by creating a special occupational retirement provision, which is a new form of jubilee plans.
The basis of this plan is to pay regular employer contributions to the employees and after a defined vesting period, provide entitlement to these contributions.
Since you are the one who defines range of participants in the jubilee plan, the classification of participants in certain groups (pension schemes), the rate of regularly payable employer contributions and last but not least, the date of obtaining eligibility, the established retirement program shall serve as a special jubilee plan.
Employees participating in the jubilee plan will receive entitlement when reaching the jubilee anniversary, and shall receive benefits when the Social Security retirement age is reached.
Naturally, the accumulated savings on the members’ accounts shall be invested on the basis of chosen optional possibilities by professional asset manager.
Payments of regular employer contributions into the jubilee plan can be complied with favourable tax (Personal Income Tax: 19.04%, Health contribution: 16.66%) up to the 50% of monthly minimum wage and 200,000 HUF annually.
In case you are interested in converting your already existing jubilee plan, or wish to create a new one through our Occupational Retirement Service Provider, please learn more of our products, or get in touch with us!