Contributions Burden on Persons Active in Agriculture in Relation to Pension Aspects

Helena Čalkovská, Lukáš Míča, Milena Otavová and Jana Gláserová
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Helena Čalkovská: Department of Accounting and Taxes, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic
Lukáš Míča: Department of Accounting and Taxes, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic
Milena Otavová: Department of Accounting and Taxes, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic
Jana Gláserová: Department of Accounting and Taxes, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2022, vol. 70, issue 6, 383-395

Abstract: The paper focuses on the area of the burden of contributions to state budget with an emphasis on pension insurance contributions of employees and self-employed persons active in the agricultural sector with regard to the amount of their future retirement pension. The comparison shows that self-employed workers in agriculture contribute to state budget about 2.5 times less than employees with comparable net income. As a result, the level of pensions is insufficient, predominantly for entrepreneurs whose pensions only amount to 39 to 45% of their real net income. On the basis of analysis of results from different models, calculations were made of the necessary monthly contributions to the supplementary pension savings plans that would ensure retirement living standards equivalent to 70% of net income earned during working life. The paper also quantifies redistributive effects by studying pension contributions of persons active in agriculture during their working life and pension withdrawals in retirement. The results are compared with those obtained from a group of employees. Contributions of the self-employed are also compared within the V4 countries. In the conclusion of the paper there are some recommendations that might lead to a reduction in the gap in contributions and better living standards for future old-age pensioners.

Keywords: employee; self-employed person; agriculture; burden of contributions; retirement pension; supplementary pension savings (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:mup:actaun:2022.029

DOI: 10.11118/actaun.2022.029

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