Entering the labour market involves much more than simply earning wages. One aspect of this is payments into a pension fund. This is something everyone must do from the age of 16 to 70. The object of pension funds is to guarantee an old age pension to fund members to the end of their lives and to protect them and their families from loss of income due to disability and death.
Premiums paid to pension funds must be a minimum of 12% of the total wages. The employee contributes 4% and the employer at least 8%. If your collective wage agreement or employment contract provides for membership in a particular pension fund, payments may not be made to other funds. Your employer is responsible for depositing your premiums into the pension fund.
By making payments to a pension fund, you will be accumulating rights to receive payment of old age pension from the age of 60 if you so choose. In addition, the pension fund plays the role of a form of safety net that can be relied on if life takes an unexpected turn for the worse. This means that you and your family will be insured against setbacks such as loss of employment due to disability caused by an accident or illness. In addition, your spouse and children may be entitled to payments from your pension fund if you pass away.