Germany: Employer’s obligation to pay a subsidy for company pension schemes

New deferred compensation agreements must be established if no agreements are already in place. Under the agreement an employer will contribute 15% of each employee’s salary to the pension provider running the company scheme. This entitles the employer to social security relief for the deferred sum paid into the scheme – although it does not entitle the employer to deduct the sum from the employee’s existing salary. [S1A BetrAVG]