Higher non-taxable contributions to voluntary pension funds

Starting from 1 February 2013, non-taxable contributions into voluntary pension funds will be raised from RSD 4,647 to RSD 5,214, the National Bank of Serbia said in a release.

Monthly employer contributions up to RSD 5,214 per employee will be exempt from personal income tax and mandatory social contributions.

The same amount of contribution by direct debit from employee salary will also be non-taxable.

In 2006, at the start of voluntary pension funds operation in Serbia, the amount of non-taxable contribution was set at RSD 3,000. This amount has been progressively adjusted to previous year’s inflation, pursuant to government decisions.

When deciding on the size of monthly contribution, fund members are typically led by the non-taxable amount. The average monthly contribution per member has been steadily rising since voluntary pension schemes were first introduced in Serbia, the release reads.