The Netherlands’ 2021 Pension Scheme Deductible

Netherland pension scheme deductible 2021The Dutch Ministry of Finance recently announced the 2021 pension scheme deductible (AOW-franchise) and the maximum pensionable salary. For defined benefit and defined contribution pension schemes, the standard deductible (AOW-franchise) amounts to €14,544 in 2021. Please note that some pension scheme deductibles differ from the standard.

Employers should also note that effective January 1, 2021, the pensionable salary may not exceed € 112,189.  The amount of € 112,189 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  € 58,311 in 2021.

If an employee must pay a personal contribution to the pension scheme or disability insurances, make sure to inform your payroll department of the new deductible and salary caps.

 

This information about the Netherlands‘ 2021 pension scheme deductible is provided by Schouten Zekerheid, Asinta’s employee benefits consulting Partner in the country.