What is an escalation scheme?
An escalation scheme is a gradual increase in the pension contributions that employers are required to make for their employees according to the agreements.
Members under TEKNIQ Arbejdsgivernes collective agreement can escalate the contractual employer contribution of 10 percent over a period of three or four years.
This means that:
The employer contribution and employee contribution must constitute at least 25 percent of the contractual contributions from the membership date in TEKNIQ Arbejdsgiverne.
- Within 1 year, the contributions must constitute at least 50 percent of the contractual contributions.
- Within 2 years, the contributions must constitute at least 75 percent of the contractual contributions.
- Within 3 years, the contributions must constitute at least the full contractual contribution. For the Industry Agreement, the escalation can occur over 4 years.
There is also the possibility of escalating parts of the flexible savings and contributions to the training and cooperation fund. This follows the same percentage increases as for the pension.
What are the conditions for an escalation scheme?
The company can be subject to an escalation scheme:
If the company has not established a pension scheme for employees covered by the agreement upon joining TEKNIQ Arbejdsgiverne.
If the employees covered by the agreement have a pension scheme with a lower pension contribution than required in the agreement.