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Employers to be Fined for Violation of Obligations of Accumulated Pension System

Employers to be Fined for Violation of Obligations of Accumulated Pension System

Employees will be fined for violation of obligations of accumulated pension system.

The penalty sanction envisages a fine of 500 GEL for the first time, in the case of repeating the fine will be determined by 1000 GEL. This is envisaged by the draft bill submitted to the Parliament.

The fine will be imposed on the employee, if the employer does not pay pension contributions to the pension agency. To remind, accumulated pension system will be launched from the Q3,2018. The pension savings will be filled with 2% + 2% + 2% contribution, employer, employee and the state.

Budgetary expenditures for the full year amount to 150 million GEL after the introduction of pension system. Budgetary expenditure is about 90 mln in 2018.