For several years now, the contributions paid into our basic pension plan have not been enough to achieve the (maximum) accrual percentage of 1.875%. Unfortunately, this will not be possible in 2023 either; pensions are set to become slightly more expensive again. This situation is mainly due to increased life expectancy and the high rate of inflation. Overall, contributions will increase by 0.5 percentage point of the pension base.

The contributions a company charges are calculated on the basis of its membership base and sick-employee bases into consideration. This is why the calculation outcome is different for each company. However, one thing is the same for all companies: the employer’s contribution is 22.1% of the pension base. The employer’s and employee’s contributions make up the total contribution, which varies from one company to another.

A separate calculation applies for contributions for the risk-based temporary partner’s pension, which employees pay themselves. These contributions are increasing in 2023 as well, mainly because the insured amount is determined in line with development of the Dutch state pension (AOW-ontwikkeling). Contributions for the risk-based temporary partner’s pension will be approximately 12% higher in 2023 than in 2022 for this reason.

Overview of the basic pension plan and risk-based partner’s pension
Following discussions with employers and the unions, the following contributions and accrual percentages have been agreed for the basic pension plan for 2023:

Defined contribution plan
In 2023, the maximum salary for the basic pension plan will increase to €75,990 (Akzo Nobel Netherlands) and € 78,380.- (Nouryon, Nobian and Salt Specialties). Contributions from any salary above this amount will be invested in a defined contribution pension plan (DC pension plan) - up to the maximum pensionable salary for tax purposes. The maximum pensionable salary for this scheme is increasing significantly from € 114,866.- to € 128,810.- with effect from 1 January 2023. This may result in higher accrual but also higher contributions for the DC pension plan.

On the pension commencement date, purchase rates are used to convert capital from the DC pension plan into pension entitlement with APF. As of 2023, these purchase factors will be determined on a monthly rather than annual basis. This will enable us to make better allowance for interest developments in this scheme.

Would you like to know more about pension accrual?

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