German pharmacies introduce mandatory employee pension contributions
Effective January 1, 2012, German pharmacy owners must contribute to employee pensions under a new collective agreement. The measure aims to boost staff motivation and retention.
Karlsruhe, Germany – A new collective agreement in Germany mandates employer contributions to employee pensions at pharmacies, effective January 1, 2012. The regulation is intended to serve as a tool for employee motivation and retention, and further improve retirement benefits for pharmacy workers.
The agreement, reached between the German Pharmacists' Association (ADA) and the ADEXA pharmacists' union, requires employers to pay a monthly sum of between EUR 10 and EUR 27.50 per employee, depending on their weekly working hours. This contribution is in addition to the employee's salary.
Employees also have the option to convert part of their salary into pension contributions, which are exempt from taxes and social security contributions. Employers are required to add a 20 percent bonus to these converted amounts.
ApoRisk GmbH, based in Karlsruhe, offers a direct insurance product called 'ApothekenRente' designed to meet the requirements of this new collective agreement. The company highlights studies suggesting that corporate pension plans are becoming increasingly important for companies to attract and retain talent, especially in light of an aging population and a shrinking workforce.