Contributions to the Pension Fund - how much is withdrawn from salary

How much of your salary goes to the Pension Fund?

The employer makes quite a lot of deductions from the employee’s salary, and this is not only the mandatory 2NDFL. By law, he is obliged to carry out social deductions from his salary himself and transfer this money to the budget.

What does the employer deduct besides taxes:

• contributions to the Pension Fund from salary amount to 22% of the accrued amount;
• A contribution to the Health Insurance Fund is also payable - 5.1%. In fact, this is payment for medicine (so, in our country it is not free at all);
• social insurance fund - 2.9%. This fund allocates funds to pay for sick leave. So, in fact, we also pay for our sick leave.

Pension contributions as a percentage of salary are the largest cost component. In general, the employer pays 30% of the accrued salary to government agencies, plus an additional 13% personal income tax is added to this. According to the law, personal income tax is paid from accrued wages, and all other contributions are based on the size of the salary, but at the expense of the employer himself.

Of course, many employers do not like this state of affairs, and they still make pension contributions from their salaries at the expense of the employees themselves, initially underestimating the real amount of wages.

Savings contributions to the Pension Fund

Since 01/01/2014, insurance premiums for compulsory pension insurance are transferred to the Pension Fund of the Russian Federation in a single payment without breakdown into insurance and savings parts (Article 22.2 of the Federal Law of December 15, 2001 No. 167-FZ). We will tell you about savings contributions to the Pension Fund in 2016 in our consultation.

In 2014 - 2021, for organizations and individual entrepreneurs making payments to individuals and not entitled to reduced rates, the following rates of insurance contributions for compulsory pension insurance are applied:

How are contributions to the Pension Fund from salary divided?

So, the percentage of contributions to the Pension Fund from salary is 22%. All this money is sent to the Pension Fund, but is divided into two large categories that pursue different goals:

1. 16% goes to the insurance part of the pension. This is a significant portion of the royalties. In fact, this money goes towards the formation of the citizen’s future pension. The more salary he receives, the larger the amount of pension contributions from it, the higher the pension will be in total.
2. 6% is the funded part of the pension. A citizen can manage this part and move money from the Pension Fund to NPFs - non-state funds. You can track how much is contributed to the Pension Fund for the savings part and monitor the growth of savings.

If we consider the insurance part, then it is impossible to somehow track how much you paid to the Pension Fund of the Russian Federation, unless you do independent calculations. This money is used to pay current pensioners. Then, when you also reach retirement age, the state will also provide you with support at the expense of young citizens - this is how the system works.

On January 1, 2021, a law came into force according to which all 22% of contributions to the Pension Fund will be allocated to an insurance pension. This rule will be in effect until the end of 2021.

This decision was caused by the fact that the Pension Fund of the Russian Federation is experiencing serious difficulties and a lack of funds. So, now the entire percentage of contributions to the Pension Fund is directed to one purpose. The savings account and the funds located on it do not go anywhere, you can manage it at your discretion, but it will not be replenished with payments from the employer.

The procedure for forming the funded part of the pension

According to Federal Law No. 424, there is the right to manage a certain share of pension transfers.

Pensions of citizens of the Russian Federation are formed through contributions that the company’s accounting department transfers for each employee to the Pension Fund.

All transfers are currently used to pay today's pensioners.

Amounts transferred for each citizen are recorded in his individual account.

At this stage, there are two possible payment methods:

1. only the insurance part;
2. insurance and savings at the same time.

Citizens born after 1967 and who expressed their decision by submitting an application before the end of 2015 can count on the second option. In the absence of an application to the Pension Fund, all transferred amounts go towards the insurance portion.

Those who made transfers of funds for the first time since January 1, 2014 also take part in the formation of savings.

They can use this opportunity during the first five years from the time of the initial payment, but until they reach 23 years of age.

Accumulative pensions are also extended to women who decide to use maternity capital funds for their formation. If the owner subsequently changes her mind, then before retirement age she has the right to withdraw this money from the Pension Fund and use it at her own discretion.

The funded part is a good addition to the basic pension. It is individual, that is, it is sent for payments to a specific citizen.

How are contributions to the Pension Fund made from wages?

The employee himself may not even think about it. The percentage of pension contributions, its calculation and transfer of funds are all a legal obligation of any company or entrepreneur that hires workers.

Payments are calculated only from the official salary of the employee. If he receives payment in an envelope, no deductions will follow. If partially in an envelope, then deductions will be calculated only from the officially posted amount.

If you are employed unofficially, the percentage of contributions to the Pension Fund will not be taken. Your pension will not be formed in any way.

By law, pension contributions in Russia are paid by the employer no later than the 15th of the next month. That is, for wages received by an employee in March, the company must make a contribution no later than April 15.

Any accountant knows how much is deducted from the salary to the pension fund. By the appointed time, the specialist carries out all calculations and transfers funds from the company’s account to a special Pension Fund account. Small individual entrepreneurs usually do not employ permanent accountants and hire temporary ones, who also do all the calculations and make transfers.

From what year did contributions to the pension fund begin?

- For a long time. Back in 1998, as an experiment, the Pension Fund began to keep records of contributions transferred by the employer for the citizens working for him to the Pension Fund. And already for 1999, the data of all working citizens of Ukraine was accepted. To date, we have accumulated information on more than 30 million insured persons.

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- And the last question. We have a lot of people working on a simplified taxation system. They transfer some amounts to the Pension Fund - part of a single or fixed tax. But these amounts are very small - from 8 to 50 hryvnia...

How to check if your employer makes contributions

Every citizen has access to information about the size of his funded pension, which costs 6% of contributions. Logically, if this 6% is paid, then 16% for the social pension was also paid. If you know how much is transferred to the Pension Fund from salary to the funded part, then you can easily identify the remaining 16%.

For example, you see that in the past month your savings account was replenished by 1800 rubles, respectively, this is 6%. We need to calculate 16%. Through mathematical calculations we find that 16% is 4800 rubles. How much is paid to the Pension Fund from the salary in this case - 4800+1800, that is, 6600 rubles.

How to get information about the status of your savings account:

• on the State Services portal, subject to registration on it;
• at the territorial branch of the Pension Fund of the Russian Federation, if you have a passport, on a first-come, first-served basis.

If you see that the savings account has not been replenished or has been replenished, but by a smaller amount, you can ask questions to the employer. This action is illegal. To get started, just contact your accountant or management. It is possible that this is just a banal error that will be corrected immediately. Accountants know very well how much interest goes to the Pension Fund, but the human factor is not excluded.

If the employer “takes a stand,” then first of all you need to submit an application to the Pension Fund itself. A trial will follow. You can also immediately apply to the court, since this is a direct violation of your rights. Appeals are accepted within three months after the violation is discovered.

What to do if the employer did not transfer taxes to the Pension Fund from 1995 to 1999

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Here is my extract, for 1991 to 2001 there are only “zeros”, because... We were not insured in the Pension Fund of Russia system; all citizens of the Russian Federation became insured only in 2002. Since 2002, they began to issue SNILS for us, submit reports based on individual information, and pay insurance premiums.

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Problems with tracking information

Since the beginning of 2021, citizens have had problems obtaining information. The percentage of pension savings regarding the funded type of pension is temporarily transferred to the insurance account. As a result, the account in which movement can be tracked is not replenished. The funded pension is frozen until the end of 2021; there will be no movement of funds in any case, even if the employer correctly fulfills all its obligations.

So, what percentage of the salary the employer transferred to the Pension Fund can only be found out by directly contacting the Pension Fund. If you have doubts, it's better to do it. Usually, if the employer is a large and stable company, there are no problems. But if this is a small individual entrepreneur, fraud may occur.

We figured out what percentage the employer contributes to the Pension Fund. In addition to your salary, 22% goes to this body. The amount is not small, but it is what shapes your future pension. If you are not satisfied with how much is being contributed to the Pension Fund, you have the right to co-finance your future pension and deposit additional amounts into your savings account. In this case, you create an additional percentage of contributions to the Pension Fund yourself.

about the author

Irina Rusanova - higher education at the International East European University in the direction of "Banking". Graduated with honors from the Russian Economic Institute named after G.V. Plekhanov with a major in Finance and Credit. Ten years of experience in leading Russian banks: Alfa-Bank, Renaissance Credit, Home Credit Bank, Delta Credit, ATB, Svyaznoy (closed). He is an analyst and expert of the Brobank service on banking and financial stability. [email protected]

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Comments: 26

Your comment (question) If you have questions about this article, you can tell us. Our team consists of only experienced experts and specialists with specialized education. We will try to help you in this topic:

Author of the article Irina Rusanova

Consultant, author Popovich Anna

Financial author Olga Pikhotskaya

1. Vladimir
   08/09/2021 at 19:28 Good afternoon. I am 69 years old and a working retiree. Please help me figure out why in the information about the status of my individual PFR personal account in clause 2.5. Only the period of work from 01/01/2002 to 12/31/2014 with the corresponding amounts of insurance contributions is indicated, although I work in the same solid structure to this day, and contributions are transferred by the employer regularly. Where can these deductions be deposited and why are they not displayed in the individual personal account of the Pension Fund of Russia? I heard that this money is accumulated in some special insurance accounts. Which ones exactly and where to find them? Thank you in advance
   Reply ↓ Anna Popovich
   08/10/2021 at 22:57

   Dear Vladimir, please contact your territorial branch of the Pension Fund of Russia with a copy of your work book. They will recalculate and enter the necessary information about your work activity.

   Reply ↓

How insurance premiums are distributed: explanations from the Pension Fund of Russia

In 2021, as in the previous year, all insurance contributions paid by the employer within the framework of compulsory pension insurance will go towards the formation of an insurance pension.

In December 2021, a Law was signed on the transfer of the entire individual insurance premium rate only for the insurance pension until 2021. Let us remind you that this rule has been in effect for the fifth year, starting in 2014.

The so-called “freezing” of pension savings (we are talking about stopping the transfer of insurance contributions by employers for funded pensions), firstly, does not reduce the pension rights of citizens, and secondly, in no way affects either the right or the ability of citizens to receive their pensions accumulation.

Those insurance contributions (individual tariff, amounting to 16% of 22, the remaining 6% “go” to a fixed payment - an analogue of the basic part of the pension), which employers pay from the general wage fund towards the future pensions of their employees, in accordance with the accepted By law, everything will be directed, as today, to the formation of an insurance pension.

In exchange for the formation of pension savings, citizens are awarded a larger number of pension coefficients, the value of which is indexed annually.
Thus, the insured persons do not lose in the amount of contributions to their future pension: they simply go to another “piggy bank”.

This is how the future insurance pension of current employees is formed. At the same time, insurance premiums received from employers go to pay pensions to “current” pensioners.

It is also worth noting that the restriction on transferring insurance contributions only to an insurance pension applies to the receipt of new contributions to a funded pension from an employer within the framework of compulsory pension insurance. All previously created pension savings have been preserved and continue to “work”: they can be invested to generate income and are today managed by the State Management Company (Vnesheconombank), a private management company or a non-state pension fund, depending on the choice of the citizen.

Payment of pension savings, if they have been formed, is made when the citizen is already a pensioner or has the right to receive an insurance pension. It can be made in the form of a lump sum payment, an urgent pension payment and a funded pension, which is paid for life.

Such explanations are given by the OPFR for the Novosibirsk region on its website.

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