A personnel fund offers an excellent way to reward skilled and motivated personnel for achieving the set targets. It is a long-term remuneration scheme designed to commit your employees to contributing to your company's success.
As the employer, you decide on the adoption of such a scheme and define the criteria according to which performance-based bonuses and/or profit-based bonuses are paid. Your company does not need to pay indirect labour costs for the bonuses paid into the fund and, moreover, they are tax-deductible for your company.
A personnel fund is established and owned by your company's personnel. The fund manages the funds it receives as performance-based and/or profit-based bonuses from the employer company as well as the returns it has earned from investing the received funds.
Benefits for your personnel
Personnel owns and manages the funds accumulated in the personnel fund. If they so wish, the members can annually draw 15% of their own fund units. From the drawn fund units, 20% is tax-exempt income and the rest is subject to tax on earned income. This means that the members, too, enjoy tax benefits related to the fund's investment.
With our partners, we will support your company and offer complete solutions for establishing and managing a personnel fund. To get started, please contact your nearest group member cooperative bank.