A favourable (para)fiscal treatment
The statutory pension is often not enough to maintain your standard of living after your career. A group insurance offers a solution due to its favourable tax treatment. Your employees do not pay taxes or social contributions on these premiums, while you, as an employer, only pay a special social security contribution of 8.86% instead of 25%. Additionally, the premiums are fully tax-deductible.
A special contribution of 8.86% to social security
However, a special contribution of 8.86% must still be paid. Unless the supplementary pension is arranged at the sector level, this contribution is not collected automatically. As an employer, you need to calculate this contribution yourself and declare it in the quarter when the payments for the extralegal pension are made. The contribution must be paid by the last day of the month following that quarter at the latest.
DB2P
DB2P, which stands for the second pension pillar database, ensures that you, as an employer, do not forget these payments. Since the establishment of this database, social security has been comparing data from insurance institutions with employers' declarations. If there are discrepancies, an investigation is automatically initiated.
Read more: "DB2P – Database Supplementary Pensions - Social Security"
8.86% also applies to the death benefit of collective accident insurance policies.
Do you, as an employer, have a collective accident insurance policy? It often includes additional insurances beyond the mandatory occupational accident insurance, such as ‘Supplementary law’ and ‘Private life’.For the death benefit, you also pay the special social security contribution of 8.86%.
On the expiry notice from your insurer, you will usually find a breakdown of the premium per coverage. This way, you know exactly which amount this contribution applies to.
