A free example of a employee pension contribution.
At the end of the month of January , everyone will receive a new payroll. For employers, it is therefore important (if applicable) to state the new own pension contribution. The calculation of the own contribution is as follows.
If there is an employee pension contribution in a pension scheme, then this contribution is often a percentage of the pension salary. (for example 4%). Pension salary = Full-time Annual Salary minus State pension franchise. This fulltime Pension salary times the part-time percentage yields the correct pension salary. The employee pension premium contribution is thus a percentage of this salary.
A calculation example employee pension contribution
- Salary € 34,167, – fulltime
- State pension franchise (2020) € 14.167, – fulltime
- Pensionsalary € 20,000, -fulltime
- Part-time percentage 80%
- Pensionsalary € 16,000, –
- Employee pension premium contribution (for example ) 4% per annum € 640, – per year
- Per month € 53.33 employee contribution
- Maximum pensionable salary is set at aprox. € 108,000.
- Forgotten employee pension contribution. Has your own pension contribution been forgotten on the salary slip? An employee can make up for this by paying it immediately via the next pay slip. Sometimes an employer also offers the opportunity to spread this over a period of the next 12 months.
- Overpaying your own pension contribution. Please note that you will never be able to calculate your own contribution more than the premium is paid by the employer.
- “Pension Distance Declarations” are out of the question. Here are the reasons. If you want to register an employee for the pension scheme, then think about a number of things. The date in service is usually set for example on 1 January , while the actual date in service may be far in the past. This can be a problem especially for the survivor’s pension. In that case, too little survivor’s pension is insured. Clearly state the expiry of the waiver so that it is official and accurate.
- Partner definition. If in doubt, check the partner definition in a employee pension contribution. This differs from the tax partner definition. A pension fund or insurer sometimes makes specific demands on the partner definition.
- Registration. Always report changes to the pension advisor. They help and correct where necessary. You will always receive a confirmation. That is so easy because from then on we take care of everything.