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:
-
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.
-
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.
Comments
0 comments