How does salary conversion affect my pension?

A salary conversion gives you less pension. Per year per 100 € that is about 1 € less pension.

(e.g. salary conversion for 3 years with 50€ per month each corresponds to 1.50€ less pension; this is offset by a higher net salary of 900€ within the 3 years)

Of course, you can compensate for this difference much more effectively by depositing into your private retirement provision.

• Related Articles

• How does salary conversion affect my unemployment benefit?

  A salary conversion gives you less unemployment benefit in case of unemployment. Generally, unemployment benefit decreases by 0.78% - maximum 2.98% depending on individual salary.

• Is salary conversion permissible when awarding food stamps?

  Yes, salary conversion when awarding food stamps is permitted. In order for food subsidies to be classified as remuneration in kind, the employment contract must be amended before the entitlement to remuneration arises. We will be happy to provide ...

• Why do I have to sign an addendum to my employment contract when I convert my salary?

  Allowances as deferred compensation may only be claimed if there is a signed addendum to the employment contract stating that you agree to the salary conversion. 

• How does the lower deposit into social security affect the event of salary conversion?

  By saving on social security, your net salary increases significantly. At the same time, the lower burden reduces the amount you pay into pension, health, long-term care and unemployment insurance. This has no effect on the nursing care and health ...

• Can food subsidies also be granted to employees who are not subject to the statutory pension insurance obligation?

  Yes, this is possible. Food subsidies may also be granted to employees who are not subject to mandatory pension insurance.