Savings Obligation – Pay Attention

Savings Obligation – Pay Attention

If you are an employee, your savings obligation is based on your taxable income. If you are self-employed, your obligation is based on the taxable profit of your business.

Note that the following incomes are also subject to the savings obligation:

• Lump-sum compensation for work-related injuries
• Maternity leave pay
• Apprentice wages for students in internships
• Remuneration from municipal councils (except for mayoral remuneration)
• Income earned in addition to early retirement benefits

Also, ensure that your pension contributions are made to a pension company covered by the law, meaning a company authorized by the Financial Supervisory Authority (Finanstilsynet).

Only income specifically mentioned in the Obligatory Pension Act is exempt from this obligation. You can find the law here: L 21 2016 (nalunaarutit.gl).