Pensionable Earnings

 

Fixed Salary

Your defined contribution is based on your annual gross salary plus your holiday allowance. This so called fixed salary is capped fiscally at an amount which is Euro 105.075 (in 2018).

 

Pension base

However, the part for which no contribution is determined, is called the state pension offset, as you will receive a state pension as well. The offset is set each year and is Euro 13,344 (in 2018). Hence the defined contribution % is being applied to your annual gross salary plus holiday allowance minus the offset, to the so called pension base.

 

The defined contribution % to be paid by the employer depends on your age and is set as follows:

 

Outcome of contribution determination:

(27.000 x 50%) x 6.6% = Euro 891

 

Age                       Nike

                              contribution

21 to 25                2.8%

25 to 30                3.9%

30 to 35                5.1%

35 to 40                6.6%

40 to 45                8.3%

45 to 50              10.4%

50 to 55              12.7%

55 to 60              15.7%

60 to 65              19.4%

65 to 67              22.6%

 

An example

Suppose your fixed salary is Euro 40,000, the offset is Euro 13,000, you work 50% part-time and your age is 37. The contribution calculation is as follows:

  1. The table reads that the % for age 37 is 6.6%;
  2. We need to apply that % to the Pension Base. Pension base: 40,000 – 13,000 = 27,000;
  3. You work part-time, so the pension base needs to be multiplied by 50%;
  4. Over that amount you apply the percentage of 6.6% subsequently.

 

SUBMENU: I build up a pension

Pension 1-2-3 (layer 2)