It is that time of the 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 2018 tax year (on income earned in 2017). For the purpose of long-term savings schemes, the status quo of no more than EUR 2,260.00 applies.
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 3,127.24. 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 3,598.05.
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 16,657.13 (pay ceiling of EUR 66,658.52) and an increased minimum relative to 2016 of EUR 14,024,72.
The pay ceiling for salaried personnel is EUR 54,648,70. The statutory pension of an employed person is estimated at 50% of their salary, subject to a maximum of EUR 27,324,35 and a minimum of EUR 14,122.89.
Sickness and invalidity benefits for salaried personnel are calculated on a pay ceiling of EUR 42,405 in 2017 and the mandatory statutory benefits for an occupational accident are calculated subject to a ceiling of EUR 42,270.08.
Lastly, the maximum deductible employer’s contribution for an individual pension commitment for salaried personnel has been increased to EUR 2,390.00. The maximum salary bonus for 2017 is EUR 3,255.00.