Burden of the Accumulated Pension Plan for the Population
06 March, 2019
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Author: Teona Absandze
The mandatory accumulated pension plan was launched in Georgia on 1 January 2019. Participation in the pension plan is mandatory for every employee under the age of 40 years as well as for their employers. Given the mandatory nature of the pension contribution, we can state that it is an additional tax burden both for employees and for employers. The proposed pension plan largely stipulates a 6% saving consisting of the joint contribution of an employee, an employer and the state. In addition, this reform creates a number of risks on the labour market.
