2021 Tax Ceilings
Following the annual tradition, we publish on our website the salary ceilings and fiscal maximums that are important for calculating the social security supplements of salaried persons and self-employed persons.
Due to the corona crisis, the government decided to freeze the maximum deductible premiums for individual pension savings, the so-called dual pension savings in the 3rd pension pillar, for 2021. Consequently, they remain at €990 for a 30% saving and €1,270 for a 25% saving. All amounts between 990 and 1,188 euros are less interesting because of the lower tax benefit in relation to the higher savings amount. For long-term savings, the maximum amount is frozen at €2,350 for four years (or the 2019 level).
In addition to these amounts, the active persons with the status of self-employed person can save in a tax advantageous way via the VAPZ or the Free Supplementary Pension for the Self-employed amounting to 8.17% of their professional income with a maximum of €3,302.77. If the VAPZ has a 'social character', the amount increases to 9.40% of the income with a maximum of €3,800.01. You calculate the allowed premium by multiplying the 2018 taxable income by the coefficient 1.03466677.
With regard to the calculation of the maximum premiums to be paid for supplementary pensions, 2nd pillar (80% rule), the estimates of the statutory pension or pension ceilings are indexed as follows:
- Self-employed persons: 25% of the income with a maximum of €17,592.11
or in other words on a maximum income of 70,368.42
- Salaried persons: 50% of the salary with a maximum of €30,013.38
or in other words on a maximum income of €60,026.75.
- The minimum estimation of the legal pension amounts to €15,911,04.
In 2021, benefits following an accident at work for salaried persons are calculated on the basis of an indexed salary ceiling of €45,711.80.
Disability benefits following a private accident or illness are calculated on the basis of a salary ceiling of €45,856.89.
The employer's contribution within the framework of an individual pension plan for wage earners (IPL) is deductible up to €2,540 in 2021. Not to be confused with the Free Supplementary Pension for Employees (VAPW) where the premium is at the expense of the employee himself (see Current from November 2018).
The system of maximum wage bonus or 'non-recurring result-related benefits' was not changed as part of the corona measures and may reach an amount of €3,447 gross in 2021.