The President has signed a law on 4th August 2015 to amend the process of obligatory pension contributions and budget funded state pension payments. The main amendments are given below:
Employers
Employers are obliged to withhold from salary and pay the pension contribution at 5% of the employee’s salary from 1st January 2018. The present pension contribution is set at a rate of 10% of the employee’s salary.
Employees
After reaching the retirement age of 63 for men and 58 for women, State pension will be paid to individuals by the fund financed from the budget. It will be effective from 1st July 2017. The pension amount depends on how many years the individual was officially employed and contributed to the pension fund. At present it is calculated on the basis of the mean employment income over a certain period of years.
