Younger employees will begin to accrue benefits under the SAF-LO Collective Pension Insurance scheme starting in 2021. This scheme applies to private sector manual labor workers in companies subject to a collective agreement. Under the old scheme, employers made premium contributions for employees from 25 years to 65 years of age, but from 2021, the entry age will be reduced to 24. The age threshold will further reduce to 23 in 2022, and to 22 in 2023. The upper age (65 years) remains unchanged.
For 2021, employers should have included employees aged 24 in the calculation of their prepayment of contributions to the pension administrator (FORA).
- Announcement (FORA, 4 Jan 2021)