How are your contributions to the state pension insurance taken into account?
Contributions to the statutory pension insurance consist of an employee and an employer share. Both shares count as deductible pension expenses. Pension expenses can be deducted as special expenses up to a specified maximum amount, with the deductible percentage having increased annually until 2023 and reaching 100% since 2024.
Maximum amounts for 2025
In 2025, you can deduct pension contributions up to the following maximum amounts:
- Single: 29.344 Euro
- Married: 58.688 Euro
These contributions have a 100% tax-reducing effect.
Calculation of the deductible amount
Your pension contributions are half paid by your employer, and you pay the other half yourself. However, the employer's share must be deducted from the deductible pension expenses as it is already tax-free.
Example:
You pay 5.000 Euro into the pension insurance, and your employer also pays 5.000 Euro. Of the total annual contribution of 10.000 Euro, you can deduct 5.000 Euro (your own share), as the employer's share cannot be considered for tax reduction.
