essenceööandjapoolsed

essenceööandjapoolsed refers to contributions made by an employer towards an employee's pension. In Estonia, this practice is part of the mandatory funded pension system, where a portion of an employee's gross salary is directed towards their individual pension account. These contributions are legally mandated and are paid by the employer on behalf of the employee. The employee also makes their own contribution from their gross salary.

The employer's contribution is calculated as a percentage of the employee's gross salary, subject to certain limits. This percentage is set by law and can be adjusted over time by the government. The funds accumulated through these employer contributions, along with the employee's own contributions and the investment returns generated by the pension fund manager, form the basis of the employee's future pension.

The purpose of essenceööandjapoolsed is to ensure a more secure financial future for individuals during their retirement. By requiring employers to contribute, the system aims to supplement the state pension and provide a more adequate income replacement level after an individual ceases working. These contributions are held in a funded pension account, which is managed by licensed pension fund managers. Employees typically have some choice in selecting which pension fund manager they wish to use for their mandatory contributions.