Suriname – Major changes Pension Scheme of Algemeen Pensioenfonds (APF)
Written by Joan Rampersad
Posted on 9 Oct 2023 - 2 minutes read
As of August 7, 2023, the government has decided to change the minimum and maximum base salary for pension premium contribution in the General Pension Act 2014. This change is with retroactive effect to January 1, 2023. Attached you will find the amended State Decree.
This concerns an increase, where an index of 450 is used for the determination of the new contribution bases.
Each employee will have to build up a pension premium of at least SRD 27,000 (previously SRD 6,000) annually. This concerns a minimum basis of SRD 2,250 (was SRD 500) per month. So even if an employee earns less than SRD 2,250 in a month, the pension premium will still have to be calculated on this SRD 2,250 per month.
The new maximum pension basis is SRD 270,000 per year (was SRD 60,000). So, for employees that earn SRD 22,500 or more (previously SRD 5,000) per month, a maximum pension premium will be calculated on the maximum amount. In 2023, this amounts to a maximum premium of SRD 1,575 per month, and this is divided equally in SRD 787.50 per month for both employer and employee. Based on the old maximum basis, the maximum total pension premium was SRD 350 per month. A rigorous increase of SRD 1,225 per month.
Given the fact that this amended legislation was only announced in August, employers will have to catch up and must make an adjustment to the pension premium to arrive at the correct amounts on an annual basis in December 2023.
This APF Pension plan can be created in Celery under Employer/Pension Plans and linked to all employees with at the touch of one button.
And on January 1st of each year, in this Pension Plan you increase the premium for both employer and employee by 0.25% (total of 0.5% increase) and as soon as you save that change, also the pension premium is adjusted at the touch of one button for all linked employees.
In this way, Celery makes it very easy for you!
Update October 30, 2023:
The President asked the Minister of BIZA to temporarily suspend the decision on pension indexation and the decision of August 7, in implementation of Article 8, paragraph 6 of the General Pension Act 2014 (S.B. 2023 no. 118). See the attachment. To this extent, this new legislation does apply, but has been temporarily suspended until further notice. As soon as more is known about the final effective date, we will inform you in our Celery blog.
Attachment:
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