pensioengrondslag

Pensioengrondslag is a Dutch term that refers to the portion of an employee’s remuneration that is used as the basis for calculating pension accrual and pension contributions within a pension scheme. It represents the part of earnings that qualifies for building up pension rights and is defined by the rules of the individual pension plan. The pensioengrondslag may be equal to the gross salary, but it is often capped, and certain components such as overtime, bonuses, or allowances may be excluded or included depending on the plan.

In defined benefit pension schemes, pension rights are typically built up as a percentage of the pensioengrondslag each year, sometimes adjusted for age and years of service. In defined contribution schemes, both employer and employee contributions are usually expressed as a percentage of the pensioengrondslag. The exact calculation and eligibility rules depend on the specific pension contract and the governing pension fund.

The pensioengrondslag is also relevant in tax and social security contexts, where it can determine the amount of pension premiums paid or tax deductions related to pension contributions. Regulations can vary by sector, company, and country, and the specific treatment is defined in the pension plan terms and applicable law.

Example: if a worker has a pensioengrondslag of 50,000 euros per year and the plan accrues pension at 2% annually, the nominal annual pension accrual would be 1,000 euros, subject to the plan’s terms and adjustments for age or service.