What amounts are taken out of your pension?
You have built up a pension during your working life. The total amount you receive is your gross pension. You still have to pay tax on that. What else do you have to pay? And even more importantly: how much net do you have left each month? We would like to explain which deductions there are and what this means for your net pension. On this page you can read more about the following deductions:
- Tax, premiums (wage tax) and the wage tax credit
- Dutch Healthcare Insurance Act (Zvw) premium
- ANW Shortfall insurance premium
- Contribution KWF Dutch Cancer Society
- Philips Pensioners Association (FPVG)
Explanatory notes
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16 May 2024
You can download the explanatory notes of the pension specification here. |
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We would like to emphasize that we cannot be exhaustive in this article and cannot describe all situations. Do you want to avoid receiving a surcharge on your income tax? Then request a provisional income tax assessment from the Tax Authorities. You can read more about this on the Tax Authorities website.
Visit Dutch Tax Authorities websiteTax and premiums (payroll tax)
Just like with a salary, you have to pay income tax and national insurance contributions on your pension. This is also called wage tax. How much you pay depends on the size of your pension and the applicable tax rates. If you receive multiple benefits, each benefit agency – such as Philips Pension Fund – will withhold wage tax. If you add up the benefits from different agencies, your total income will often fall into a higher tax bracket than the individual benefits. You must then take into account that you will have to pay additional tax afterwards via your income tax return.
Income tax rates 2025 (in Dutch)Payroll tax credit
A discount may be applied to the payroll tax calculated in this way, the so-called payroll tax discount. The general tax discount to which everyone is entitled is usually taken into account. As a pension recipient, you often receive multiple benefits from different institutions, such as an AOW pension and a supplementary pension (for example from Philips Pensioenfonds). For most pensioners, the payroll tax discount is applied to the AOW pension. If your pension from Philips Pensioenfonds is higher than your AOW pension, it is wiser to apply the payroll tax discount to your pension from Philips Pensioenfonds. You will always receive the maximum discount on your highest source of income. You indicate this on the ‘Application of tax credit’ form. Please note: you must then indicate to the Social Insurance Bank ('SVB', the benefits agency for your AOW pension) that you do not want to apply the payroll tax discount to your AOW pension.
Is your total gross income after retirement more than €76,817 per year? Then it is better not to apply any payroll tax credit to your benefits at all. Your net pension will then be lower, but you will avoid having to pay back tax to the Tax Authorities later.
Below you will find the amounts and percentages for determining the payroll tax credit as of 1 January 2025. Would you like help in deciding whether or not to apply the payroll tax credit to your Philips Pension Fund pension? We are happy to help you with this. Contact our Service Desk.
Please note: multiple incomes?
Does your income consist of multiple incomes, for example an AOW pension and a supplementary pension from Philips Pensioenfonds? Then make sure that the wage tax credit is only applied to one benefit. If you do not do this, you will pay too little tax. You will have to pay this back to the Dutch Tax Authorities later via the income tax return. The amount of the credit you receive depends on your total income. By having a good understanding of how the wage tax credit works and how it is reduced as your income increases, you can avoid unpleasant surprises.
| Amounts per year | younger than the AOW-age | AOW-age or older | Income | ||
| Amount | Percentage | Amount | Percentage | ||
| Wage tax credit | € 3,068 |
- |
€ 1,536 |
- |
up to € 28,406 |
| Reduction wage tax credit |
- |
6.337% |
- |
3.170% | from € 28,406 up to € 76,817 |
| Maximum reduction | € 3,068 |
- |
€ 1,536 |
- |
reached at € 76,817 |
Calculation examples
In two calculation examples we show you how the wage tax credit is calculated and to which benefit you can best apply it.
Calculation examplesDutch Healthcare Insurance Act premium (Zvw)
The government levies a mandatory contribution for the Healthcare Insurance Act (Zvw) on your pension. This premium is intended to cover healthcare costs in the Netherlands. In 2025, this contribution will be 5.26% of your pension income. This applies up to a maximum income of €75,860. The contribution is automatically deducted from your gross pension.
ANW Shortfall insurance premium
Have you taken out an ANW Shortfall insurance with us? Then you pay a premium for this. The amount of premium you pay depends on your age and the insured amount. The ANW Shortfall insurance continues until you reach your state pension age. If your partner is younger at that time, you will be offered the opportunity to continue the insurance at an individual premium from your state pension age until your partner reaches state pension age.
More about the ANW Shortfall insuranceContribution KWF Dutch Cancer Society
In 2024, we will have transferred €97,676.48 to the Dutch Cancer Society (KWF). Every year we make a donation to KWF. This is made possible by donations from Philips Pensioenfonds pensioners. Almost 10,000 Philips Pensioenfonds pensioners donate a small amount (starting at 25 euro cents) per person to the Dutch Cancer Society every month. You can read what is done with this money on www.kwf.nl.
Will you participate? You do not have to donate a large amount. You can participate for €0.25, €0.50 or €1 per month. Or you can choose a different amount. You can find more information about the Dutch Cancer Society on their website.
Start a contribution?
Do you receive a pension from Philips Pensioenfonds and would you like to make a contribution? You can start a monthly contribution or change your donation using the form ‘Contribution KWF Kankerbestrijding’.
Go to the formPhilips Pensioners Association (FPVG)
Would you like to become a member of one of the associations for Philips pensioners? You can have your contribution to this association deducted from your pension. You can indicate this when you register with the association. The website of the Federation of Philips Pensioner Associations (FPVG) contains an overview of all associations and their contact details.
What remains?
After all these deductions you will receive your net pension. This is the amount that is deposited into your bank account.
Related information
Is the information below perhaps also interesting for you?
Indexation policy
We try to increase your pension each year with price inflation. This is called 'indexation'. Do you want to know more about this?
Go to indexation policy
Financial position
The financial position of Philips Pensioenfonds is assessed on the basis of the funding ratio, among other things.
Go to financial position