State-run sector employees, whose gross salaries are higher than those of the people working in the private sector, will stand to benefit the most from the mandatory private pension system (the second pillar), a survey by ZF based on official statistical data reveals.
Employees in companies that are state-controlled could have an average gross salary of 628 euros in 2008, the first year in which contributions to the private pension system will be collected, and those in privately controlled companies could have an average gross salary of 429 euros. As a result, the monthly contribution of 2% of the gross salary transferred to the private pension system in the first year could be worth 12.06 euros, in the case of public sector employees compared with 8.6 euros for private sector employees.
Another comparison, this time between public administration employees and an average employee in the entire economy leads to a similar situation due to the salary differences and to the differences in the level of contributions. According to the latest available data, an average gross salary in public administration was 700 euros in the first seven months of this year, compared with a gross average salary of 406 euros for the overall economy.
While the state reports and pays the full amount of taxes and social security contributions for all its employees, private sector employers use a number of methods to avoid paying social security contributions (sole traders, microenterprises, royalties and other means). Yet, the higher the contributions to the pension system are, the higher the pensions paid out by the mutual funds at a later date will be.
In other words, state sector employees will stand to benefit the most from the private pension reform. On the other hand, employees in the private sector, where actual incomes are higher than those stated and taxed, wi
