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Suspension of second-pillar payments from 1 July 2020 to 31 August 2021

16.04.20, Ministry of Finance

From 1 July 2020 to 31 August 2021, the state will suspend the contributions it makes to the second-pillar funded pension from social tax (4% of salary).

* People born in the years 1942–1960 are the exception:

  • From 1 July 2020 to 31 August 2021, the 4% contributions made from social tax into these individuals’ second-pillar funded pensions will not be suspended and they will continue to be made as usual.
  • They can however suspend their 2% and the state’s 4% contributions to the second-pillar funded pension by submitting an application in October 2020 requesting that the payments not be made.

For more information, visit the Ministry of Finance website.

Dates          Changes                                                                                                                                                                   
01.07.2020-31.08.2021 The 4% contributions made from social tax for all persons who have subscribed to the funded pension will be suspended, other than for people born in the years 1942–1960*.
01.10.2020-31.10.2020 Submission of application requesting that contributions not be made, whether to waive making one’s 2% contribution from earnings. In this case 2% payments will be suspended from 1 December 2020 to 31 August 2021. The application is to be submitted at the Pension Centre or a bank.
People born in the years 1942-1960 can also submit the application*.
Starting 1 November 2020 The employer will verify whether the contributions for its employees to the funded pension will be suspended or continued.
01.12.2020-31.08.2021 Application submitted – the 2% contribution may not be withheld from the employee’s salary.
Application not submitted – the 2% contribution is withheld as usual.
Starting 1 January 2023 Compensation of payments. Additional 4% transfers will take place from the state to people who continued the 2% contributions. The amount of contributions made by each person from 1 July 2020 to 31 August 2021 will be considered. Contributions were not suspended for people born in the years 1942-1960 and compensation of payments will not take place in their case*.