Tax-free employer contributions to the doctors' pension scheme
Employer subsidies
Under Section 172a of the Sixth Book of the German Social Code (Sozialgesetzbuch/SGB VI), employers of physicians must pay a subsidy equivalent to half of the contribution to a professional pension scheme, but no more than half of the contribution that would have been payable if the physician had not been exempt from compulsory insurance under the statutory pension scheme. This contribution is tax-free if paid in the legally prescribed amount.
Wage tax/income tax
Employer subsidies to the doctors' pension scheme are not subject to wage tax or income tax if the subsidy amount does not exceed half of the doctor's total expenses and the employer's contribution payable if he/she is subject to compulsory pension insurance (tax exemption pursuant to Section 3 no. 62 sentence 2 letter c and sentence 3 of the German Income Tax Act/EStG.
Maximum allowance 2023
The maximum tax-free contribution of the employer to the medical pension scheme for 2023 is € 678.90, assuming an income threshold for pension insurance/west for 2023 of € 7,300.00 per month and a contribution rate of 18.6% (half of the employer's contribution = 9.3%). For the new federal states, the maximum subsidy with an income threshold for pension insurance/East for 2023 of € 7,100.00 per month (half employer's contribution = 9.3% from € 7,100.00) = € 660.30.
Status: February 23, 2023
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