No more tax exemption on private pension receipts

Private pension and insurance payments paid by employees and employers on behalf of employees used to have income tax exemption. As of 3 months from June 2012, the current method will be readjusted based on the following:
• Private pension receipts by employee will not have anymore exemption.  The state will make a contribution to be followed in a different fund and these contributions will be annually limited to minimum wage for a year and up to 25% of employees’ private pension payments.
• Private pension payments made by employers will be exempted up to 15% of employees’ gross salary. Annual tax-exempt amount cannot exceed the annual minimum wage amount.