Cumul professional income and pension

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Retirees enjoying the benefit of a statutory pension from the governement could still be active but if they do earn professional income above a certain threshold, their pension annuity from state source is reduced or even frozen.

This has been challenged by many years as an unacceptable hurdle for senior to remain active beyond pensionable age.

A royal decree published on June 20, shifting gear and shall allow a beneficiary of a state pension to still maintain a professional activity and earn professional income without a negative bearing on his/her pension entitlement.

The major changes are the following:

  • As from January 1st 2013 (and for the professional income of 2013) no cap will be applied on the professional income that can be earned if the person has reached the age of 65 AND can prove a professional career of 42 years(cumulative conditions).
  • If the above conditions are not met, the cap on the income that can be earned without suffering a diminution/suppression of the legal pension benefit will remain applicable.
    The caps have been reviewed as follows (and will be indexed every year on January 1) (figures in EUR):

      Cap 2013
    Age Child at charge Employee activities Self-employed activities (or mix employee and self-employed activities)
    <65 No 7,570.00 6,056.01
    Yes 11,355.02 9,084.01
    At 65 No 21,865.23 17,492.17
    Yes 26,596.50 21,277.17
    At 65 with carreer of minimum 42 years N/A No cap No cap

  • As from 2015, termination payments will have to be considered as professional income for the application of the caps.