Expert Group opinion on pension compensation

Compensation for pension loss constitutes salary

Since the introduction of the Future Pensions Act (WTP) many employers have switched to a new pension scheme. Instead of age-related accrual (under which older employees receive more in pension contributions), there is now a flat contribution: everyone receives the same percentage, irrespective of age.

For older employees this generally means less pension accrual, while younger employees can actually benefit. The law stipulates that employees who are disadvantaged as a result must be adequately compensated for this at no additional cost.

Compensation can be provided in two ways:

1. In the area of pensions - with clear statutory rules, such as a maximum compensation period until 2037.
2. In the area of pay - for example, in the form of an additional monthly allowance. No specific rules apply here.

For example, an employer can offer a 40-year-old employee compensation in the form of a monthly allowance of €500 from the age of 50 until their retirement date. If the employee leaves the organisation or dies before the age of 50, the agreement lapses.

The Tax and Customs Administration has now indicated in an Expert Group opinion that this form of pension compensation will be seen as a salary entitlement that will be taxed when it is received. This compensation will not be regarded by the tax authorities as a taxable right (entitlement) at the time of commitment. 

For further details (in Dutch), see: KG:204:2025:17 compensatie pensioenschade in de loonsfeer | Kennisgroepen