These are a type of pension plan promoted by companies for their employees as an incentive and at the same time, it's a good way to complement the public retirement benefit. Likewise, it's one of the most valued social benefits by employees.
Do you know their tax advantages?
- For companies, the expense is deductible in corporate tax.
- For employees, the tax effect is neutral. On the one hand, they are imputed as work income in the personal income tax (IRPF), and subsequently, reduced.
In addition, in this case, the contributions made by the worker voluntarily will be deductible. (Up to €10,000 per year)
In the case of a private pension plan, only allows deducting €1,500 per year.
Do you know that you can be linked to objectives?
The company can establish objective criteria such as salary, professional category, seniority or be linked to certain objectives, which increases productivity and employee commitment. This helps to attract and retain talent within the company.
The construction sector has become the first industry to implement the so-called Simplified Employment Plans, and it is expected that in the near future, other sectors will follow suit, serving as an effective complement to public benefits.
This has been regulated in art.56 of the VII General Collective Agreement of the construction sector and developed in Book Three of said agreement. This means that it affects all salaried workers subject to the collective agreement of the construction sector and is voluntary for self-employed workers in the sector.
To Keep in mind...
Companies in the sector will have to start making monthly contributions as of February 1, 2024 (the date on which the Plan will be integrated into the fund managed by Vida Caixa).
However, it is allowed "within three months following the entry into force of the pension plan" to make contributions for the period from January 1, 2022, to January 31, 2024. (According to art.52 of the VII CGS and the instructions established in the Aporta+ application of Vida Caixa).
Beware
The labor inspection may request proof of payment from the company and its non-compliance could result in administrative sanctions.
Do you know the obligations of the company as a promoting entity?
