Does the bonus count towards your pension? We are checking whether it can be added

The basis for calculating the pension depends not only on the amount of earnings and length of service, but also on the amount of the base amount. Can a future retiree add discretionary bonuses received from his employer to his pension? This may be an important issue when choosing calendar years for calculating the pension, because in some workplaces such bonuses are often granted.

What counts towards your pension?

The pension amount is calculated on the basis of the next 10 calendar years selected by the future retiree from the last 20 calendar years preceding the year of submitting the pension application.

When determining the next 10 calendar years, the Social Insurance Institution will only take into account immediately consecutive calendar years. If in a given year a person did not work and did not earn any income, that year will also be counted towards the pension. This may reduce the benefit amount.

What happens if we cannot verify earnings?

It sometimes happens that a person employed under an employment contract cannot justify the amount of his or her earnings. In such a situation, it must be documented that in a given period the future retiree was employed under an employment contract, and ZUS will recognize this fact. It then assumes that the person received the minimum benefit for the work performed.

Does the award bonus count towards your pension?

Discretionary or reward bonuses paid to persons employed under an employment contract are subject to contributions. This means that it is counted towards your future pension. A discretionary bonus may be awarded for additional work or for very good results.