Social Security Fund - pension plans to be provided by the employer are not mandatory. However, there is a mandatory state pension fund provided in a form of the Social Security Fund. It provides various types of benefits to the employee including unemployment allowance, maternity allowance and retirement allowance. Both the employer and the employee are required to make monthly contributions to the Social Security Fund.
Provident Fund - the most common pension plan is a provident fund, which is a form of a voluntary pension fund. If an employer wishes to set up a fund as a kind of benefit for its own employees, the fund must be registered with the Securities and Exchange Commission. Both the employer and the employee may agree to contribute at any percentage to the fund as per the fund's regulations as long as it is in the range of 2 - 15% of the employee's wage.