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The contribution to the voluntary pension is a way of saving for pension for employees or for those with incomes from independent activities. An employee can contribute to a pension fund in the limit of 15% of gross monthly salary, according to the law 204/2006 on voluntary pensions.
The threshold for deductibility of contributions to voluntary pension represents the equivalent of 400 euros in a fiscal year, according to Article 21 (3), point j) of the Tax Code. The exchange rate used to determine the equivalent in euro is the exchange rate leu / euro by the National Bank of Romania on the registration date of the expenses by the employer.
The voluntary pension is realized as a result of the monthly participation (the contribution period) to a pension fund, managed by a pension, insurance or investment management company.
The contributions to the pension fund are invested by the administrator (the pension, insurance or investment management company). When the right to pension opens, that person receives the voluntary pension amounts resulting from the investment of the paid money.
In the annual ceiling of EUR 400, the contribution to the voluntary pension is not included in the basis for calculating the income tax and the social contributions. For the amounts that exceed this threshold, the income tax and social contributions will be calculated.
To simulate a salary calculation for an employee with a contribution to the voluntary pension under the deductibility limit, we take as an example the following numbers for a month with 20 days:
The contributions to the employee gross income of 3500 lei and a contribution to the voluntary pension of 100 lei are:
The basis for the income tax will be: gross salary + the value of the meal tickets (3500 + 187) – all contributions (368 + 193 + 18) – contribution to the voluntary pension (100 lei) = 3008 lei
The income tax is thus 16% * 3008 = 481 lei
The employee’s net salary is 2440 lei (the gross salary minus the social contribution and the salary and the meal ticket tax). The payment rest will be the net salary minus the contribution to the voluntary pension, which the employer will transfer to the pension fund, meaning 2340 lei.
The amount of voluntary pension contribution goes directly to the pension fund and doesn’t enter into the calculation of the tax base.
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