Definition of «pension contributions»

Pension contributions refer to the amounts paid by both employees and employers into a pension scheme. These payments are typically made on a regular basis, such as monthly or weekly, and are deducted from an employee's salary before tax. The funds accumulate over time in the pension pot, which can then be used to provide retirement income for the individual when they stop working. Employers may also make additional contributions on behalf of their employees as part of a company pension scheme.

Sentences with «pension contributions»

  • An area where the rich benefit from huge tax relief is in the tax treatment of pension contributions. (conservativehome.blogs.com)
  • They think the government is covering up the real reason for the proposed increase in pension contributions, from 6.4 % to 9.5 %. (politics.co.uk)
  • In the past, strong investment returns allowed state and local governments to practically avoid making pension contributions for extended periods of time. (gothamgazette.com)
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