Implementation options eligible for state incentives

If an employee uses his right to salary sacrifice and would like to make use of state incentives within occupational pension provisioning, not all implementation formats are eligible. Of the five existing options for occupational pensions, only direct insurance, the staff pension sheme and the Pension fund meet the criteria for state incentives under AVmG.

Please note that for staff pension schemes and pension funds, contributions for pension provisioning of up to 4% of gross income (max. income threshold) are tax free starting from 2002. However, state incentives only apply to a maximum of EUR 525 for 2002 (see “Allowance table” section).