Possibly a lower (net) supplementary pension for retirees

16 January 2020 | News
As of 1 January 2020, the Tax Authority introduced changes to the tax brackets system that could have consequences for your net pension.

Reaching state pension age prior to 1 January 2020

Click here to see your tax brackets if you reached state pension age prior to 1 January 2020.

The following table shows the differences between the tax rates in 2019 and 2020:

On an income up to €20,711 On an income above €20,711 and a maximum of €34,712* On incomes above €34,712* and a maximum of €68,507 On incomes above €68,507
2019 18.75% 20.20% 38.10% 51.75%
2020 19.45% 19.45% 37.35% 49.50%

The first bracket tax rate is now slightly higher and therefore you might receive a lower net amount in 2020 than you received in 2019.

State pension age in 2020

Click here to see your tax brackets if you reached or will reach state pension age in 2020.

Compulsory Health Insurance (Zvw)

The Compulsory Health Insurance (Zvw) statutory contribution has been lowered to 5.45%. The contribution in 2019 was 5.7%. The HPF deducts the income-dependent Zvw contribution from the gross pension payments. This means that in 2020 you will receive a slightly higher pension. However, it is also possible that on the basis of the aforementioned tax bracket changes you could receive a lower net pension. Note, that the maximum amount over which you pay the income-dependent Zvw contribution has been increased to € 57,232. In 2019 this was 55,927. In other words, the deduction also changes even if your gross pension doesn’t.

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