When does exemption from pension fund contributions (BVG) apply?
If an employee becomes unable to work due to illness, accident or disability, special regulations regarding pension fund contributions apply. In such cases, under certain conditions, the employee is entitled to exemption from contributions from the 91st day onwards.
1. Exemption from contributions in the event of incapacity for work
If an employee is ill or injured and unable to work, they are exempt from paying contributions to the pension fund from the 91st day onwards.
The maximum duration is 24 months, depending on the pension plan.
2. Contribution exemption in the event of disability
If the incapacity to work becomes permanent and the employee is recognized as disabled.
This exemption applies for as long as the disability persists, but no longer than until the normal retirement age. After that, the disability pension is converted into a retirement pension.
What does the pension plan regulate?
The exact details, such as:
- Start of contribution exemption
- Duration
- Amount of insured risk protection
are specified in the employer's respective pension plan. Please check this individually to understand the regulations that apply to you.
Notification of incapacity for work
In order for us to activate the necessary exemption from contributions, it is important that the incapacity for work is reported promptly. This is done by the employer via our absence reporting platform.