All financial benefits that an employer grants to their employee for retirement, survivor's benefits in the event of death, or disability benefits in the event of incapacity for work or occupational disability are referred to as company pension schemes (bAV). For many employees, company pensions represent a sensible option to compensate for losses in the statutory pension insurance.
Legal entitlement: Employees have the option of requesting their employer to convert part of their salary or wages into an entitlement to company pension benefits, a process known as salary conversion.
Tax advantages: However, company pension schemes not only provide an additional pension and/or comprehensive risk protection. Employees also receive significant tax advantages.
Advantages for the employer: It enables the employer to retain employees. Furthermore, the employer often reduces payroll costs associated with company pension schemes.
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