How much are the taxes on group insurance for a worker?

Workers who benefit from group insurance through their employer are able to build up a supplementary pension. But how much are the taxes and how much do workers pay for their group insurance?

The worker does not pay tax on the premiums.

However, the payment is taxed in the following way:

  • Inami contribution of 3.55% (on the total gross capital, bonus included)
  • Solidarity contribution of 0 to 2% (on the total gross capital, bonus included)
  • Final tax on the gross capital without bonus:
    • 10% (+ supplementary municipal taxes) on the part of the capital built up with the premiums paid by the worker after 1 January 1993.
    • 16.5% (+ supplementary municipal taxes) on the part of the capital built up with the premiums paid by the worker before 1 January 1993.
    • 16.5% (+ supplementary municipal taxes) on the part of the capital built up with the premiums paid by the employer. This rate decreases to 10% (+ supplementary municipal taxes) if the worker keeps working until age 65.
  • Bonuses are tax exempt.

Note that:

  • If a worker asks for the capital from his or her group insurance at age 60, the tax rate will be 20% (+ supplementary municipal taxes). At age 61, it will be 18% (+ supplementary municipal taxes).
  • Exception: taxation at age 60 and age 61 will remain at 16.5% (+ supplementary municipal taxes) if the individual takes his or her statutory pension at that age.

For the sake of clarity: it is only possible to ask for the capital from the group insurance on the statutory pension date or if the employee is entitled to an early statutory pension.