Netherlands Pension Update for 2022

The Dutch Ministry of Finance recently announced the 2022 pension scheme deductible (AOW-franchise) as well as the maximum pensionable salary.

The standard deductible (AOW-franchise) for defined benefit and contribution pension schemes amounts to €14,802 in 2022. However, some pension scheme deductibles differ from the standard, so employers should consult with their benefits adviser to ensure full compliance.

Effective 1 January 2022, the pensionable salary may not exceed €114,866. In addition, the amount of €114,866 is reduced proportionately for employees who work part-time.

The maximum annual income covered under the Dutch laws WIA (long term disability) and WW (unemployment) increased to €59,706 in 2022.

If your employee must pay a personal contribution to the pension scheme or disability insurances, ensure that your payroll department understands the new deductible and salary caps.

 

Schouten Zekerheid, Asinta’s employee benefits consulting Partner in the Netherlands, provided this article about pensions in the Netherlands.