Do you want to increase the growth of your employees’ pension by awarding them a bonus pension? Doing this is beneficial both for you as an employer and for your employees. Here’s what you need to take into account as an employer.
What is a bonus pension plan?
A bonus pension plan is a way of awarding variable pay to employees that’s advantageous in terms of taxes and other levies. It is a group insurance plan in which the pension accrued by the affiliated employees depends on them achieving the targets set by the company. This means that you can reward your employees’ efforts with additional pension growth.
Tax advantages
A bonus pension plan is advantageous for both employer and employee in terms of taxes and other levies. This is clear in the simulation below, where the net advantage of a cash bonus of EUR 1,000 is compared with the same sum spent on group insurance.
If you pay a cash bonus, the employee receives a net amount of just 32% of the total salary cost; with group insurance the employee receives 73%.
Learn more?
Discover the full article here: https://www.vanbreda.be/en/insights/get-started-in-good-time-with-introducing-a-bonus-pension-plan-in-your-company