.png)
Earlier this year, the government approved a new pension product. It is a long-term investment product (DIP for short), which is an alternative to traditional pension savings. The aim of the DIP is to make saving for old age more attractive and to encourage more people to build up sufficient financial reserves for retirement. Compared to traditional pension savings, the DIP is much more flexible. People can invest more efficiently and more cheaply in a DIP through shares, ETFs, funds or interest-bearing cash, and take advantage of tax advantages to do so.
Why does DIP make sense from an employer's perspective? In addition to being one of the most popular work benefits, employer contributions of up to CZK 50,000 per employee per year are not subject to social security and health insurance. It is also a tax-deductible company expense. In addition, the contribution to the DIP is as easy to process as the contribution to the DPS (supplementary pension savings). Just get payment instructions from the employee and you can start contributing.
You can also use the DIP contribution to reward employees who do not save for their old age. You can contribute any amount, either as a lump sum or on a regular basis. Compared to a salary increase, a DIP contribution works out better for both parties. The increase in salary comes with increased social security and health insurance contributions. In addition, the net increase for the employee is also reduced by income tax, social security and health insurance. In contrast, the employee will receive the full DIP contribution. Similarly, it is not associated with any additional contributions from the employer.
In addition, it is an investment in the future of the worker, who will be prepared for old age, thereby reducing stress and increasing satisfaction in his or her current job. At the same time, the employee can deduct his contributions to the DIP from his tax base, up to a maximum of CZK 48 000 per year.
Thousands of employers in the Czech Republic already contribute to old-age benefits through the DIP. One of the providers of DIP is Portu, the largest online investment platform on the Czech market, which has almost 250,000 users. Portu prepares tailor-made investment portfolios for its clients, which is ideal especially for those who do not want to worry about anything.
Employers can make regular or lump-sum contributions to their employees in various amounts. Employees can send their contributions either through their employer via payroll deduction or individually from their bank account. Another advantage of the DIP is that the employee does not have to send any contributions himself and can only use the employer's contributions for retirement savings. More information for employers on the Port DIP can be found here.
.png)
