What is individual pension saving?
Individual pension savings is a form of long-term saving intended to build an additional pension on top of statutory pension provisions. In many cases, individual pension savings offer tax benefits.
Contributions can be tax-deductible up to a certain annual maximum amount, which means you pay less income tax.
Did you know? If you take your end-of-year bonus as cash, taxes could munch away nearly half of it! 😲
By channeling that amount into pension savings via Payflip, you're playing it smart & boosting your retirement stash and optimizing your Payflip benefits. 💰
How does it work? 🔄
Individual pension saving: You have participated in individual pension saving through your bank or insurance broker in 2024.
Pick Your Path: Select the pension saving reimbursement benefit in your Payflip tool.
Declare Your Savings: Enter last year's savings amount (up to the max limit).
Show Your Proof: Upload your tax certificate (tax certificate 281.60). 📜
Get the Green Light: Await approval from your HR admin.
Cha-Ching!: Once approved, your contribution is smoothly processed with your next salary.
Financial ceilings for 2024 (Input in Payflip in 2025) 📊
€1020
€1310 (maximum amount)
Note: You can also request a partial reimbursement if you don't have sufficient budget to request the maximum amount.
Proof documentation & tax certificates 📄
Your official proof comes in the form of tax certificate 281.60.
Reimbursement is based on last year's savings.
Ensure the certificate is from the previous calendar year.
Make sure your name is on the certificate!
Claim only what the certificate shows or less.
How to find your tax certificate
Through MyMinfin.be 💻
Visit MyMinfin.be.
Log in using:
itsme, or
Your trusty ID reader.
Head to "my documents".
Download "Form 281.60 - Life Insurance and Pension Savings".
Through Your financial institution 🏦
Check out the website of the financial institution where your pension savings account lives.
Financial overview & budget impact 💶
Cost = Pension savings amount + 8.86% special employer social security contribution.
Example: €1020 savings costs about €1,110 in Payflip budget (€1020 + (€1020 × 8.86%)).
Example: €1310 savings costs about €1,426 in Payflip budget (€1310 + (€1310 × 8.86%)).
Financial aspects
The reimbursement is served as a gross amount via payroll. 🚨
Key benefits:
NO employee social security contributions (13.07%)! 👍
Withholding tax? Yes, it applies (typically 40-53.5%).
This means more ka-ching compared to a regular cash payout. 💰
An 8.86% special employer social security contribution is taken care of by your employer.
Example calculation
Chosen amount | 1020 EUR |
Budget impact in Payflip | 1110 EUR (=1020€ x 8,86%) |
Employee social security contributions (13,07%) | 0 EUR |
Gross amount on your payslip | 1020 EUR |
Withholding tax (40 - 53,5%) | - 545 EUR (=1020 x 53,5%) |
Net paid out amount through Payflip | 474 EUR |
If you choose not to pay for this benefit through Payflip and instead opt to receive your year-end bonus in cash, your net payout would only be €368.
Choosing this benefit through Payflip means an extra €106 for you! 🎉
Can you still benefit from the tax advantage for individual pension savings?
Absolutely! 🤩 This tax benefit has already been reflected in your tax return from last year.
What happens to my pension savings at the end of my employment contract?
If you leave after the reimbursement of the pension savings and it turns out you have no or insufficient entitlement to the budget based on the rules of the joint committee, a deduction will be made from your severance pay or net salary equivalent to the employer's cost for the reimbursement of the pension savings.
👉 Be sure to check your cafeteria plan policy!
Important reminder 📌
It's important to note that this is a partial refund of your individual pension savings through your flex plan. To qualify, you must have made the payments to your bank last year. We will not be in contact with your bank and are not financing your pension savings.
Specific details (such as the date of processing this choice in the payroll) may vary based on your employer's policies. Always consult with your HR department or a financial advisor for personalized advice.