Change to pension contribution Basic Scheme from 1 January 2023
From 1 January 2023, StiPP's Basic Scheme will change and flex workers will accrue more pension. After the change, the employer's premium will be calculated on the basis of the pensionable salary and no longer on the pensionable salary. The premium will rise from 2.6% to 8%. We would like to explain what pensionable salary and pensionable base are and the impact of this new regulation.
Pensionable salary and pensionable base
The part of the salary on which pension is accrued is called the pensionable salary. This part of the salary consists of the social security salary (salary on which the employer pays tax and social security contributions) minus any additional taxable benefit for a company car, the employee's share in the premium for the pension plan, and the salary exchanged for tax-free allowances. Under the current scheme, employers pay 2.6% premium to StiPP on this pensionable salary.
The pension base is the pensionable salary without the franchise. The franchise is the part of the salary on which no pension is accrued. Employers do not pay pension premium on this part, because the employee will receive an AOW benefit for it. In 2022, the franchise is set at €7.13 per hour. The provisional hourly franchise amount for 2023 has been set at €7.86.
What does the new regulation mean?
After the new scheme takes effect, employers will provide the pensionable earnings in the PDO file for the Basic Scheme and no longer the pensionable salary. The same hourly franchise and maximum pensionable hourly wage as in the Plus Scheme must be used to calculate pensionable earnings. With the data supplied, StiPP calculates the employees' pension. In order to receive a correct premium invoice, it is important to submit the data on time and in full.
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