The Dutch government and employers' and workers' associations have reached an agreement on pensions. Part of this agreement is compulsory pension insurance (AOW) for entrepreneurs. Expected that law based on this agreement will be adopted in the spring of 2024. What should entrepreneurs expect?
Basic rules of pension insurance for entrepreneurs
The exact parameters of the new law are still unknown - it is expected that:
- All Dutch residents registered as entrepreneurs will be required to have AOW pension insurance and pay premiums. If a partner of an entrepreneur helps him in business, the requirement for compulsory pension insurance will apply to them.
- Insurance premiums will range from 7,5 to 8% of income. The maximum amount of contributions will be accrued when income reaches 143% of the statutory limit. minimum wage. If income exceeds this amount, the amount of contributions will not increase.
- The pension amount will be 70% of the last earned income (profit from business). The maximum pension cannot exceed 100% of the legal minimum wage.
- If you become unable to work before reaching age AOW, for the first year you will have to do without a pension, then it will be assigned.
- Pension contributions will not be taxed.
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Publication Date: 15.12.2023
