What contributions are used to form a pension fund

Monthly payroll deductions are contributions to a pension fund.

Pension contributions and investment income accrued thereon form a general financial cushion from which pensions are paid.

There are pension contributions:

• mandatory pension contributions or MPC, which are paid from the employee's income;
• mandatory professional pension contributions or MPPC,which are paid at the expense of an employee working in harmful working conditions;
• since January 1, 2024, mandatory employer pension contributions have been introduced, which are paid by employers for their employees at their own expense;
• voluntary pension contributions, which are paid by individuals in their favor at the expense of their income; by individuals and legal entities in favor of the recipient (third party).

In the material, we will tell you more about the above pension contributions.