Collection of Contributions for Financing Individual Savings Pensions

How are pension contributions paid and collected?

The rules governing the collection of pension contributions apply to all employees in the Republic of Kosovo who have permanent residence, with the exception of citizens of countries with which the Republic of Kosovo has signed bilateral pension agreements. To determine whether you fall under this exemption, please consult the Legislation section.

In accordance with the Law on Pension Funds in Kosovo, every employer is required to contribute on behalf of employees who have not yet reached retirement age, as well as on their own behalf. Specifically:

1. If you are employed

Before withholding tax at source, your employer is required to:

a) Withhold 5–15% of your gross salary as your pension contribution;
b) Pay an additional 5–15% of your gross salary as the employer contribution.

In total, the employer must pay at least 10% of your gross salary to the KPST (5% from you + 5% from the employer).
For information on income tax rates, please visit the website of the Tax Administration of Kosovo.

2. If you are self-employed

You must make your pension contributions every three months, as follows:

a) If you pay tax on gross income, with lower allowable deductions (before pension contribution deductions), your contribution must be:

• At least 10% of your quarterly net income, but not more than €600 per quarter;
• A maximum of up to 30% of your quarterly net income.

b) If you pay income tax on a presumption basis, your contribution must be:

• At least one third (1/3) of the presumed tax amount;
• At most three times the minimum amount.

c) For all categories of self-employed persons, the minimum quarterly contribution is 30% of the Minimum Wage.

If you include yourself in the monthly wage declarations, the same provisions apply to that income as for employees (point 1 above), i.e., 5% employee + 5% employer. The provisions for self-employed persons apply to any additional income (points 2a–c above).

If contributions are reported and paid correctly by the employer (or by you, if you are self-employed), they are automatically allocated to your individual pension savings account at the KPST.

To verify whether your contributions are being paid and recorded, you can:

• check your pension savings account transactions online through the KPST eTrusti platform;
• check your pension savings account transactions online through the eKosova platform;
• request your account balance at KPST service counters, either in person or through an authorized third party;
• wait for the annual statement, which the KPST sends by physical mail or email, depending on your registered contact information.

The Tax Administration of Kosovo is authorized to issue regulations regarding the deadlines and procedures for declaring and paying contributions by self-employed persons. Please consult your accountant for guidance on reporting requirements.