As is customary each year, the new limits and ceilings for tax purposes that are important for statutory pensions, supplementary pensions, and other forms of replacement income are published on our website.
For the purpose of what is known as the 3rd pillar or saving on an individual basis, a maximum amount of EUR 940.00 in pension savings schemes can be deducted for tax purposes for the 2017 tax year (on income earned in 2016). For the purpose of long-term savings schemes, the status quo of no more than EUR 2,260.00 applies. The government already introduced this ceiling at the start of 2015.
In addition, self-employed persons can still pay into a Free Supplementary Pension for the Self-Employed (VAPZ) in the amount of 8.17% of their professional income, subject to a maximum of EUR 3,060.07. Payments for a VAPZ with social characteristics, or invalidity coverage in other words, are up to 9.40% of the professional income, subject to a maximum of EUR 3,520.77.
For the purpose of determining the maximum supplementary pension in the 2nd pillar according to the 80% rule, the statutory pension for self-employed persons is estimated at 25% of their income, subject to a maximum of EUR 16,299.35 (pay ceiling of EUR 65,197.40) and a minimum of EUR 13,108.32.
The pay ceiling for salaried personnel is EUR 53,528.57. The statutory pension of an employed person is estimated at 50% of their salary, subject to a maximum of EUR 26,764.28 and a minimum of EUR 13,749.63.
Sickness and invalidity benefits for salaried personnel are calculated on a pay ceiling of EUR 41,573.16 in 2016 and the mandatory statutory benefits for an occupational accident are calculated subject to a ceiling of EUR 41,442.43. Linked to the increase in the ceiling for occupational accidents, it was decided to reduce the insurance tax on the mandatory statutory cover from 4.13% to 3.75%. The intention is to compensate for the increased contributions of employers in this way.
Lastly, the maximum deductible employer’s contribution for an individual pension commitment is EUR 2,340.00 for salaried personnel, while the maximum salary bonus for 2016 has been increased to EUR 3,264.00.