Tag Archives: pension

Social Security reconciliation

How is Social security configured ? Social Security and Health tax are mandatory deductions from gross pay. In addition to the employee’s contribution there is also an employer’s contribution. They are configured at two rates: a lower rate for gross … Continue reading

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Why you shouldn’t withdraw severance pay

Since the changes in the pension plan programs was implemented in Jan 2008, much confusion still exists. In the past when an employee was fired after a minimum tenure of 1 year, they were paid severance pay by the employer. Some … Continue reading

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Who is exempt from Social security payments ?

There are three types of income that determine the basis for Social Security and Health Tax payments: 1. salaried employee 2. self-employed 3. other income (not work related)  The following are exempt from payment: 1. Housewives – provided they are married to an ensured person … Continue reading

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Mandatory Pension law

The mandatory pension law was recently updated (Sept 7, 2010).Originally planned for gradual annual updates from 2008 – 2013, when the mandatory % will reach 15% (5% employee, 5% employer and 5% severance pay -employer) The new revision now ads … Continue reading

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