Pension Extension Order
In general, the Extension Order increases the minimum rate of employee contributions for savings to 6% and employer contributions to 6.5% from the determining salary as defined in the Extension Order[3], in two stages. The Extension Order provides that employer payments for savings into an insurance fund or provident fund which is not a pension fund as described above, will include the employer's payment for disability insurance in the amount required to insure 75% of the determining salary of the employee, provided that the rate of employer contributions for savings is not less than 5% of the determining salary. The Extension Order further provides that if there is an increase in the cost of cover for disability insurance, the cost to the employer for savings and disability insurance together shall not exceed 7.5% in any event.