On 1 January 2020, the Labour Market in Balance Act (WAB) came into force but the regulation regarding Pension entitlement was postponed until the 1 st of January 2021. This will have a significant effect regarding employers who employ employees via an external payroll organisation as an employee on an external payroll is now entitled to the same remuneration conditions as an employee on the client’s own payroll.
As from the 1 st of January 2021 this will now include the Pension Premium.
The solution to the pension issue has been defined and as of 1 January 2021, all payroll employees will be entitled to an ‘adequate’ pension.
What does this mean in concrete terms for the payroll organisation?
A pension scheme must be arranged for the payroll employee(s) before 1 January 2021. There are two options for this:
Payroll employees participate in the pension scheme of the hirer where they currently work.
Payroll employees are given their own adequate pension scheme that meets the set requirements.
The premium for the pension is at least equal to the ‘standard premium’, this is laid down by law and is recalculated annually currently at 14.6%.
FGPS has chosen the Pension scheme from Brand New Day.
The payroll employee participates in this pension scheme from the first day of work and thus builds up rights from day one.
The pension scheme also provides cover for surviving dependants.