Minister for Finance Edward Scicluna launched a number of fiscal incentives aimed at employers and their employees to take up voluntary private pensions. These incentives were announced in this year’s budget.
Minister Scicluna explained the benefits reaped by employers when they introduce such incentives for their employees. Employers will be in a position to retain their best talent within their organisations, offer better working conditions, and strenghten their position as ideal employers.
While benefitting from tax credits, employers who introduce such schemes will be showing their commitment in the future well-being of their employees. The tax credit being given to employers is capped at €150 per annum per employee.
For the employees, the investment made by their employers on their behalf will not be considered as a fringe benefit and will therefore be tax exempt. Employees are also being given the opportunity of investing their own funds in such schemes, whereby any such investment up to €1,000 per annum will carry a tax credit of €150.
Minister Scicluna concluded by saying that fiscal incentives for voluntary private pension schemes are another boost to income during retirement. The recent issue of the 62+ Government Savings Bond had the same objective. These investments will augment the annual income of pensioners during their retirement.