Impact on Employing Companies

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From January 1, 2022, this subsidy obligation will also apply to existing salary conversion contracts. The employer subsidy is a flat rate of 15 percent of the salary conversion amount, provided that the employing company actually saves on social security contributions.

If the contribution assessment limit increases, not only does the contribution for the salary conversion (here: pension fund contract) increase, but the amount of the employer's contribution may also change. The employer must take the adjusted conversion amount into account in the payroll calculations. This includes the adjustment of the statutory mandatory contribution. The new total amount must be paid to the insurance company or pension provider, in this case to the pension fund.

Impact on Employees
The benefits of the insurance company or pension provider resulting from the salary conversion are increased and the pension gap for the employee is reduced. The employee receives information about this via appropriate ghana consumer email list documents such as an addendum to the insurance certificate.

Impact on insurance companies and pension providers
A major challenge is the often lacking or insufficient technical support for policy management systems. This is particularly the case for products with variable premium payments, where the payments made to the insurance company or pension provider are included as a building block in the insurance contract. Employers could make contributions that exceed the maximum contribution exempt from social security contributions. The insurance company would have to determine how to deal with such challenges.

information and communication needs
When the contribution assessment limit is increased, there is often an increased need for information and communication through target group-oriented information preparation. This is done via various communication channels. Especially against the background that the contribution assessment limit was reduced for 2022 and is now being increased again.