Motivate your employee with 68 % higher amount by spending the same – 102 EUR*
|
Adding to the salary, EUR |
Contribution to the employee’s pension fund, EUR |
Decision to motivate employee (before taxes) |
100 |
100 |
All individual income taxes |
39.5 |
0 |
Employee’s money in account |
60.5 |
0 |
Contribution to III pillar pension fund |
0 |
101.5 |
Employee’s total income |
60.5 |
101.5 |
Other taxes paid by the company |
1.5 |
0 |
Company’s total expenses |
101.5 |
101.5 |
*The financial benefit is due to the fact that contributions to pension funds are exempt from taxes, which are used as an incentive for the employer to encourage employee loyalty and to contribute to the employee's long-term accumulation. These tax benefits are valid provided that the contribution to the pension fund does not exceed 25% of the employee's estimated employment income. The calculations do not take into account the effect of the amount of non-taxable income. Calculations are based on tax rates effective from 2019.