What are Mandatory Contributions?

Under the Cayman Islands Pension Act, both you and your employer are required by law to make contributions to a local pension plan. These contributions are known as mandatory contributions.

Here’s how it works:

  1. Total Contribution Amount:

    • You and your employer must together contribute an amount equal to 10% of your earnings.
    • This applies up to an annual maximum earnings limit of CI$87,000.
  2. Employer’s Contribution:

    • Your employer must contribute at least 5% of your earnings.
    • If your employer decides to contribute more than 5%, your share of the total 10% contribution can be reduced by the amount your employer exceeds 5%.

This ensures that the total combined contribution from both you and your employer meets the legal requirement of 10% of your earnings.

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