2022 Tax Ceilings

A new year, new hopes, new wage ceilings and new fiscal maximums for calculating social security supplements for wage earners and the self-employed.

However, not for the maximum deductible premiums for individual pension savings, the so-called dual pension savings in the 3rd pension pillar. There is again a status quo so that these premiums remain at 990 euro for a 30% saving and 1,270 euro 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 for another year at 2,350 euros (or the level of 2021).

However, there is an adjustment of the revaluation coefficient for determining the maximum VAPZ premium. In addition to the 3rd pillar pension savings, active persons with the status of self-employed person can save in a tax advantageous way via the PSPS or the Private Supplementary Pension for the Self-employed amounting to 8.17% of their professional income with a maximum of EUR 3,447.62. If the VAPZ (PSP)S has a 'social character', the amount increases to 9.40% of the income with a maximum of EUR 3,966.67. You calculate the allowed premium by multiplying the taxable income 2019 with the coefficient 1.06473156.

With regard to the calculation of the maximum contributions 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 18,363.64 euros or in other words on a maximum income of 73,454.56 euro.
  • ┬áSalaried persons: 50% of the salary with a maximum of 31,972.37 euro or in other words on a maximum income of 63,944.74 euro.
  • The minimum estimate of the statutory pension as a single person for both statuses is now 17,332.35 euro.

In 2022, the benefits following an accident at work for wage earners are calculated on the basis of an indexed wage ceiling of EUR 48,084.06. In addition, the government is lowering the insurance tax on 'law' premiums (mandatory part) from 3.26% to 3.23%.

Disability benefits due to private accident or illness are calculated at a salary ceiling of EUR 48,234.33.

The employer's contribution in the framework of an individual pension plan for wage earners (IPL) is deductible up to EUR 2,610 in 2022. Not to be confused with the Free Supplementary Pension for Employees (VAPW) where the premium is borne by the employee himself (see Current from November 2018).

The system of the maximum wage bonus or 'non-recurring result-related benefits' was not changed as part of the corona measures and may again reach an amount of 3,558 euros gross in 2022 (including solidarity contribution).