Employer pension decision calculator 2026
What a EUR 676 pension contribution really means for your company.
Adjust the decisive variables yourself. The calculator separates company cost, potential employee impact and long-term capital projection without promising a net pension or a business outcome.
2026
Your company model
These figures are an orientation for an initial discussion. The final calculation must be completed for each employee and payroll month.
Total workforce, not only expected participants
Share of employees included in the model
Model corridor EUR 2,001–6,450: above the transition zone and up to the 2026 general annual income threshold for statutory health insurance
Fully employer-funded; 2026 tax-free maximum
The EUR 338 threshold
The first EUR 338 is modelled as exempt from tax and social-security contributions.
The next EUR 338 remains tax-free but is generally subject to social-security contributions.
Generally subject to social-security contributions in this model: €338
Used only to put company cost into context
Market return before effective costs
An assertive model with historical context – not a forecast
An assertive model with historical context – not a forecast
Standard scenario
10% market scenario before product costs. With a 2-percentage-point effective-cost assumption, this produces a 8% model return after costs.
Historical 15-year value
The official MSCI World USD Net Return rose from 100 in July 2011 to 484.83 in July 2026. This equals 11.10% p.a.; mathematically 9.10% after the selected 2-percentage-point cost assumption.
Replace with the actual effective-cost figure in a proposal
10% − 2% = 8% model return
The default model deducts 2.00 percentage points a year. This is slightly above the BaFin weighted average for the surveyed 30-year unit-linked sample contracts.
Your model result
20 participants
20 participants. Modelled total annual employer cost €179,396.88. Modelled capital €952,180 per participant.
Company cost
- annual pension contributions
- €162,240
- additional annual employer social charges
- €17,156.88
- modelled total annual employer cost
- €179,396.88
- share of gross payroll
- 19.93 %
- share of annual revenue
- 5.98 %
Employee impact
- monthly pension credit
- €676
- potential additional monthly social charge
- €71.49
In the selected model, a €676 pension contribution is set against a potential additional social charge of €71.49.
The actual charge falls where social-security contribution ceilings are partly or fully reached.
Capital projection
10% − 2% = 8% model return
Calculation method: the effective annual return is converted into its equivalent monthly return. Contributions are paid in arrears at month-end.
- contributions per participant
- €243,360
- modelled capital per participant
- €952,180
- monthly 4% model withdrawal before deductions
- €3,174
- after a flat 30% model deduction
- €2,222Illustration derived from the capital model — not a guaranteed or lifelong tariff pension.
- modelled group capital
- €19m€19,043,604
Disclose the assumptions
The primary sources behind the 2026 model.
MSCI World · USD Net Return
The MSCI factsheet dated July 31, 2026 shows cumulative growth from 100 to 484.83 between July 2011 and July 2026. This equals a calculated 11.10% p.a. in USD; after a flat 2-percentage-point cost assumption it would be 9.10%. MSCI Net Return is an index methodology reflecting assumed withholding tax on dividends, not performance after individual product costs. Historical context, not a future guarantee.
Open primary sourceMSCI · World Index in EUR
The official EUR net-return series shows how period, currency and return variant can materially change the outcome.
Open primary sourceBaFin · effective costs
For unit-linked contracts with a 30-year term and monthly contributions, the weighted average among the surveyed best-selling products was a 1.90 percentage-point effective cost; the median was 1.64.
Open primary sourceGerman Pension Insurance · pension funding limits
German Pension Insurance confirms for 2026 employer contributions through a pension fund, pension scheme or direct insurance: up to EUR 8,112 a year tax-free, of which up to EUR 4,056 a year is exempt from social-security contributions.
Open primary sourceFederal Government · 2026 reference values
The official 2026 monthly figures are EUR 8,450 for the pension and unemployment contribution ceiling, EUR 5,812.50 for the health and long-term care ceiling, and EUR 6,450 for the general annual income threshold.
Open primary sourceFederal Ministry of Health · statutory health insurance
For 2026, the Federal Ministry of Health states a 14.6% general statutory health-insurance rate and a 2.9% average additional contribution; the individual insurer's rate may differ.
Open primary sourceFederal Ministry of Health · long-term care insurance
The Federal Ministry of Health states a 3.6% general contribution rate for social long-term care insurance. The allocation can vary by number of children, age and place of employment.
Open primary sourceFederal Ministry of Finance · benefit phase
Benefits from pension funds, pension schemes and direct insurance are treated for tax purposes under Section 22 no. 5 EStG in the benefit phase. The actual tax effect depends on the individual case.
Open primary sourceSection 229 SGB V · pension benefits
Occupational pension benefits can be subject to statutory health and long-term-care contributions. Capital benefits are also converted into monthly amounts by law for this purpose; the individual case must be reviewed.
Open primary sourceStandard social-charge assumption: statutory health insurance, 2.9% average additional contribution, one child and employment outside Saxony.
For the first employment relationship, the model assumes an eligible implementation route under Section 3 no. 63 EStG: pension fund, pension scheme or direct insurance. It assumes that the 2026 annual limits of EUR 8,112 tax-free and EUR 4,056 exempt from social-security contributions have not been used by other contributions and that twelve equal monthly contributions are paid. EUR 676 and EUR 338 are the monthly amounts derived from those annual limits.
Simplified model calculation, not a forecast or guarantee. The selected simplified return reduction is included; actual tariff costs and their effect are not fully represented without product documents. The monthly illustration spreads 4% of model capital over twelve months each year and additionally shows a flat 30% model deduction. It is not a guaranteed or lifelong tariff pension. Actual tax and health and long-term-care contributions are individual; inflation is not included. Past performance is not a reliable indicator of future results.
Average gross salary is only a planning approximation. Contribution ceilings, health insurer, care-insurance status, place of employment and further levies must be reviewed in payroll for every employee and payroll month. This is not tax or legal advice.
Now test the model with your real workforce.
In a benefits review, we replace assumptions with your employee structure, payroll data and actual contract costs.