Thread: Pension Second Pillar contributions
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Old 12.07.2007, 16:58
Shorrick Mk2 Shorrick Mk2 is offline
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Re: Pension Second Pillar contributions
Quote:
DaveA
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Aha..the mist is starting to clear. So for this 40-year employee, the company (and poss employee share together) a total of 10% of (79560-23205) = 56355 ?

So the company pays 5636chf for this employee (and employee nothing in this scenario) ? It doesnt sound like much...

dave
I think the rate applies to the employee contribution (note I'm really not sure on this part)- which the company must at least match. The company can pay in whatever it likes (i worked for a bank which paid 3x my contributions). If the company elects to take over the employee's contribution, I think it then pays 2x the 10% you mentioned.

I'm not quite sure however whether that absolves the employee from paying tax on that part.

I have a colleague who used to have a scheme like this, unfortunately he's away on holidays.
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