Adjustment of the compulsory contribution

Under Art. 15 AOA, general dentist and self-employed members may, on application, request an individual assessment of their obligation to pay contributions. This individual assessment will be based on the income they generated in the penultimate financial year.
If the income they generated from dentistry over that period is lower than the income threshold applicable to the assessment period, the compulsory annual contribution will be calculated by multiplying the income generated from dentistry in the penultimate calendar year by the contribution rate valid during the relevant assessment period.

Example for the compulsory annual contribution for 2024:
Income from self-employed work in accordance with the income tax statement for 2022: EUR 49,000.00 X 18.6% = EUR 9,114.00
In this case, the member will be paying an annual contribution of EUR 9,114.00 for the year instead of the compulsory annual contribution of EUR 16.851,60 for 2024. Members will always have to provide proof of their income by means of the relevant tax statement for the penultimate financial year. However, instead of submitting this statement, this may also be verified by means of an informal confirmation note from their tax adviser.

Income also includes all of the payments made by medical care centres in accordance with Art. 95(1)(2) SGB V, provided the purpose of these centres includes the provision of dental services.
Members who are in receipt of an income from employment as well as from working as a general or self-employed dentist have to provide separate evidence of these earnings (Art. 16 (2) AOA).

Members may only claim back contributions that they have already paid before the end of the relevant financial year in which they were paid. The financial year is always the same as the calendar year.

However, please also note that reducing your contributions will also always cause a reduction in the amount of pension you will later be entitled to. Lower contributions = lower pension entitlement!

Contributions for employed members

The contributions payable for employed members depend on the wage on which their social security contributions are based. When establishing the above, the income thresholds and contribution rates of the statutory pension scheme apply.
Employed dentists consequently have to pay 18.6% of their gross wage on which their social security contribution is based every month in 2024.
If their income is higher than the income threshold, they only have to pay the highest rate set out for employees. The highest rate is calculated by multiplying the monthly income threshold by the current contribution rate and, for 2024, amounts to EUR 1,404.30 (EUR 7,550.00 * 18.6%).
Pursuant to Art. 172 a SGB VI, employers are required to pay half of the relevant contribution up to the highest pension contribution rate set out for employees.

 

Example:
Agreed gross monthly wage = EUR 2,500.00
Gross income x Contribution rate = Contribution x 2 = Total amount
EUR 2,500.00 x 9.3 % x 2 = EUR 232.50 x 2 = EUR 465.00

Voluntary contributions

2 options:

• Regular voluntary contributions
• One-off annual voluntary contributions

Maximum amount: 2.5-times the compulsory annual amount, 2024: EUR 42,129.00

Advantages of voluntary contributions:

• Higher pension
• Better protection in the event of disability (for one-off payments: qualifying period of 3 years)
• Better protection for surviving relatives (for one-off payments: qualifying period of 3 years)
• Tax deductible
• Offer a lot of flexibility
• Can be stopped at any time
• Highly transparent
• Do not lead to any additional costs, as is the case with private insurance providers

Regular voluntary contributions:

• Application
• Medical examination
• Will only be denied in the case of evidence that a member will retire before the age of 62

One-off voluntary contributions:

• No need for a medical examination
• No paperwork involved, can simply be transferred
• 3 years qualifying time for disability pension and survivors insurance: In the event of the insured event, the amount will be reimbursed and not included in the pension.

 

 

Tax deductibility of contributions

 

Volume of deductions:

• For single persons, in 2024, generally up to EUR 27,566
• For married persons, in 2024, generally up to EUR 55,132

Deductible amounts 2024:

• Example: Member pays standard mandatory tax:
  EUR 16,851.60 * 100 % (since 2023) = EUR 16,851.60 deductible amount
• One-off voluntary contributions up to EUR 27,566 = EUR 10,700.00
• One-off voluntary contribution up to the maximum amount (EUR 42,129.00) = EUR 25,200.00