Three pension Pillars

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Three pension Pillars


The first Pillar consists of the mandatory pension insurance on the basis of generation solidarity. All the employed insured persons distribute to this Pillar, according to the law, 15% of the gross salary, which is paid to the state budget. The budget assets are used for payment of the pensions of the present pensioners. When the insured persons acquire the conditions for pension, HZMO will start to pay the pensions to them in accordance with the Act.

The amount of the pensions is adjusted every six months with half of the sum of the increase of the salaries and the consumer prices index.

As the employees insured only in Pillar I. of pension insurance are considered those employees and persons equalized with them according to the special regulations that had 40, over 40, and less than 50 years of age on the day of the beginning of implementation of Pillar II. (1 January, 2002) , and which decided to have the mandatory insurance only in Pillar I.. Also, the employed insured persons which had reached the age of 50 or more on that day have the mandatory insurance only in Pillar I. of pension insurance.