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Definitive regulation of special social security contribution (Wijninckx contribution) as of 2019 for Belgian supplementary pension systems

Retirement|Pensions Corporate Consulting|Pensions Risk Management

January 17, 2019

On 16 November 2018, the bill definitively regulating payment of the special social security contribution was adopted.

On November 16 2018, the project of law to install the definitive regulation for special social security contributions, also known as the "Wijninckx contribution", has been accepted and has become effective January 1, 2019.

Transitional regulation through 2018

The organizers of supplementary pension schemes for salaried workers and self-employed individuals (also IPC´s, individual pension commitments) were due to pay a special social security contribution of 3 % if the total amount of premiums paid into a retirement and life insurance plan, exceeded a specific ceiling (€ 32,472.96 in 2018, indexed annually). This regulation applies until the contribution year 2018 and must be paid in the 4th quarter of every contribution year.

Determination of excess

Sum of the employer and employee contributions for the retirement and life guarantee > specific ceiling.

Calculation of contribution

3% on any excess, but limited to the employer contributions.

Definitive regulation as of January 2019

As of January 2019, not only the supplementary pensions and IPC´s are taken into account, but also all supplementary pension schemes in the second pillar (VAPZ contracts [Free Supplementary Pension for Self-Employed Individuals], NIHDI contracts [National Institute for Health and Disability Insurance], POZ contracts [Pension Agreement for Self-Employed Individuals] and internally financed pension schemes). Also the determination of the excess will no longer be based on the contributions, but on the statutory and supplementary benefits.

The special contribution will be calculated on the increase of reserves of the supplementary benefits compared with the previous contribution year. For salaried workers, this contribution must be paid at the latest by January 31 of the year following the contribution year, while for self-employed Individuals this deadline is December 31 of the contribution year.

Determination of excess

Statutory pension + supplementary pension > pension objective with:

  • Statutory pension = for salaried workers 50% of the statutory pension ceiling and for self-employed individuals 25% of the pension ceiling in function of the career (number of years worked/45 ).
  • Supplementary pension = the reserves of the preceding year of each supplementary retirement and/or survivor´s pension, regardless of the status, converted into an annuity.
  • Pension objective = maximum statutory pension of the public sector (€ 80,024.15 current ceiling).

Calculation of contribution in case of exceeding pension objective

{Reserves of the contribution year – reserves of preceding year (corrected on the basis of the average 10-year OLO´s of the last 6 calendar years prior to the contribution year) } x 3%.

For more information on this subject as well as for personal advice, contact Karine Wettinck.