Guideline 13. Formulating appropriate bases for the establishment of contribution rates

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The institution establishes calculation bases and contribution rates that are transparent and adapted to the needs of difficult-to-cover people.

Guideline code

EXT_01800

Mechanism

As many difficult-to-cover people have low, fluctuating and unpredictable work income, the management may consider setting the calculation base on different bases, such as a percentage of the:

In the case of voluntary contributory pension programmes, optional contribution scales that take into account different financial capacities might be considered. In such a case, due measures should be taken to ensure that the contributors know what they will be getting in return for various levels of contributions.
In defining strategies to improve collection of contributions and compliance, the management may wish to refer to the ISSA Guidelines on Contribution Collection and Compliance, which covers all the key components of a contribution collection and compliance system.

Parent

Structure

The management should select the bases on which contributions are assessed as well as the consequent contribution rates to be paid.