(2023) How are your contributions to the statutory pension insurance taken into account?

Contributions to the statutory pension insurance consist of the employee and employer share. The employer's share in the statutory pension insurance is also considered deductible pension expenses.

Pension expenses can be claimed as special expenses up to a certain maximum amount, although they only have a tax-reducing effect at a certain deduction rate. This deduction rate will increase to 100 per cent by 2023.

In 2023, pension contributions are fully deductible up to 26.528 Euro for singles and 53.056 Euro for married couples. These contributions have a 100% tax-reducing effect.

Your contributions to the statutory pension insurance are half paid by your employer, and you pay the rest. From your pension expenses, which are only partially deductible, you must therefore fully deduct the employer's share again.

Example: You pay 5.000 Euro into the pension insurance, and your employer pays the same amount. Of this 10.000 Euro annual contribution, your deductible share (100 per cent) is 10.000 Euro. However, since you have already received the employer's share tax-free, you must deduct it again, leaving 5.000 Euro that actually have a tax-reducing effect.