Old Age Pension Scheme for the Self-Employed
Zelfstandigenpensioen
Coverage
Mandatory insurance
- Compulsory for all persons who fall under the scope of the social status ‘self-employed’ (i.e. self-employed in a main profession only and as helpers).
Excluded
- Self-employed persons in secondary occupation.
Voluntary insurance
- Not possible.
Financing
General finances
- PAYG-financed pension from social security contributions.
Contribution rates
- Degressive contribution rate varying according to the level of the net professional income without contribution assessment ceiling. In addition, there is a system of special contributions.
- Contribution basis: professional income of the year in question (gross salary minus professional expenses).
- Payable to a social insurance fund to which one has to affiliate.
- The social security contributions paid are a global amount (instead of individual percentages per social security sector) and are used for the global financial management for all benefits of the social security system for the self-employed. This global management finances all social security branches according to their needs and not according to fixed percentages.
Taxation of contribution payments
- Contributions are tax-deductible.
Administration
- The pension is calculated by the ‘National Institute for the Social Security of the Self-Employed’ (NISSE).
- The ‘Federal Pension Service’ (FDP) pays the retirement benefits.
Qualifying Conditions
Qualifying conditions
- The statutory retirement age is 65; it increases to 66 in 2025 and to 67 in 2030.
- No minimum insurance period; maximum of 45 career years.
- Termination of previous conditions for self-employment is a precondition for claiming pension benefits.
- The retired person must reside in Belgium.
Early retirement
- Early retirement is possible and depends on the age and length of career (opening rights to a pension): available at age 60 after 44 years of career, age 61 after 43 years of career, and 63 after 42 years of career; available without negative (permanent) adjustments to pension benefit.
Deferred retirement
- Retirement is not compulsory. The person can delay his/her application. Meanwhile, further contribution payments on earnings are required.
- In order to promote longer working lives, the ‘principle of the occupational record unit’1 does not apply in case a person decides to work more than the specified maximum number of days (14,040 days). (There is one exception: if the number of days above this maximum are days that are assimilated with working days due to unemployment, they will not be counted.)
Combining employment & retirement
- In principle, it is possible to earn an unlimited amount of extra income if the person is retired (after statutory retirement age) or has completed a sufficient number of career years. However, these periods do not count for additional pension rights.
- Earnings limits exist for early retirement after insufficient career years.
Benefits
Pension benefits
- Mainly calculated on the basis of contributions paid during the career: maximum 45 years; periods of effective and assimilated work; some periods (e.g. studies) can be regularised after payment of contributions.
- Maximum amount: only professional income of up to an amount of EUR 61,865.94 (in 2021) per annum are considered in benefit calculation.
- Minimum amount: a minimum pension can be obtained if one has worked at least 2/3 of a full career.
Benefit calculation
- As from 2021, benefit calculation is the same as in old age pension for employees (before 2021, a correction coefficient on the income of 30% was applied).
- Pension benefits are calculated on the basis of three elements: the length of the career, the indexed professional income and the family status of the person concerned (single and family status, i.e. whose spouses have terminated all non-authorised employment).
- Adjustments: earnings used for the calculation of the pensions are adjusted; yearly adjustment of pensions on the basis of the consumption prices (at irregular intervals also revaluation according to decision from the government).
Taxation and social security contributions
- Progressive levy on the overall retirement income (statutory and supplementary pension) and a levy for health care.
- In principle taxable in the personal income tax (exception made for victims of world wars).
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Mandatory insurance
- Compulsory for all persons who fall under the scope of the social status ‘self-employed’ (i.e. self-employed in a main profession only and as helpers).
Excluded
- Self-employed persons in secondary occupation.
Voluntary insurance
- Not possible.
General finances
- PAYG-financed pension from social security contributions.
Contribution rates
- Degressive contribution rate varying according to the level of the net professional income without contribution assessment ceiling. In addition, there is a system of special contributions.
- Contribution basis: professional income of the year in question (gross salary minus professional expenses).
- Payable to a social insurance fund to which one has to affiliate.
- The social security contributions paid are a global amount (instead of individual percentages per social security sector) and are used for the global financial management for all benefits of the social security system for the self-employed. This global management finances all social security branches according to their needs and not according to fixed percentages.
Taxation of contribution payments
- Contributions are tax-deductible.
- The pension is calculated by the ‘National Institute for the Social Security of the Self-Employed’ (NISSE).
- The ‘Federal Pension Service’ (FDP) pays the retirement benefits.
Qualifying conditions
- The statutory retirement age is 65; it increases to 66 in 2025 and to 67 in 2030.
- No minimum insurance period; maximum of 45 career years.
- Termination of previous conditions for self-employment is a precondition for claiming pension benefits.
- The retired person must reside in Belgium.
Early retirement
- Early retirement is possible and depends on the age and length of career (opening rights to a pension): available at age 60 after 44 years of career, age 61 after 43 years of career, and 63 after 42 years of career; available without negative (permanent) adjustments to pension benefit.
Deferred retirement
- Retirement is not compulsory. The person can delay his/her application. Meanwhile, further contribution payments on earnings are required.
- In order to promote longer working lives, the ‘principle of the occupational record unit’1 does not apply in case a person decides to work more than the specified maximum number of days (14,040 days). (There is one exception: if the number of days above this maximum are days that are assimilated with working days due to unemployment, they will not be counted.)
Combining employment & retirement
- In principle, it is possible to earn an unlimited amount of extra income if the person is retired (after statutory retirement age) or has completed a sufficient number of career years. However, these periods do not count for additional pension rights.
- Earnings limits exist for early retirement after insufficient career years.
Pension benefits
- Mainly calculated on the basis of contributions paid during the career: maximum 45 years; periods of effective and assimilated work; some periods (e.g. studies) can be regularised after payment of contributions.
- Maximum amount: only professional income of up to an amount of EUR 61,865.94 (in 2021) per annum are considered in benefit calculation.
- Minimum amount: a minimum pension can be obtained if one has worked at least 2/3 of a full career.
Benefit calculation
- As from 2021, benefit calculation is the same as in old age pension for employees (before 2021, a correction coefficient on the income of 30% was applied).
- Pension benefits are calculated on the basis of three elements: the length of the career, the indexed professional income and the family status of the person concerned (single and family status, i.e. whose spouses have terminated all non-authorised employment).
- Adjustments: earnings used for the calculation of the pensions are adjusted; yearly adjustment of pensions on the basis of the consumption prices (at irregular intervals also revaluation according to decision from the government).
Taxation and social security contributions
- Progressive levy on the overall retirement income (statutory and supplementary pension) and a levy for health care.
- In principle taxable in the personal income tax (exception made for victims of world wars).
1 The ‘principle of the occupational record unit’ states that an entire career may not exceed the number of days required for a full pension (i.e. not more than 14,040 days).
Legal Basis: Royal Decree No. 72 on Old Age and Survivors’ Pension for the Self-Employed (Koninklijk besluit nr 72 betreffende het rust- en overlevingspensioen der zelfstandigen).