01
Employer matching
First check whether a personal contribution triggers additional employer funding.
Luxembourg 2026Official tax source
Deduct personal contributions to an employer pension plan
Assess the value of a personal contribution to your employer’s supplementary pension arrangement without confusing it with an individual article 111bis plan.
Calculate my tax saving- Maximum deduction
- €1,200 · of personal contributions per year
- Potential saving
- Depends on income and the €480 allowance
- Main condition
- Employee affiliated to an eligible occupational pension scheme that permits personal contributions.
- Term / liquidity
- Until the scheme’s benefit conditions are met
Employees generally do not select the provider. The employer defines the plan, so the decision mainly concerns personal contributions, vested rights and departure rules.
2026 calculator
Estimate personal employer-plan contributions
The €1,200 annual allowance is separate from an individual article 111bis plan and excludes employer contributions.
Method and limitations
The engine applies the legal ceiling, calculates the additional reduction in taxable income, then reuses the progressive 2026 scale and employment-fund surcharge. It does not simulate an ACD decision, foreign taxation or future product taxation.
Comparison scope
Why providers are not ranked
The employer selects the scheme. A commercial table would wrongly imply that an employee can subscribe with a different provider.
No artificial ranking
This is deliberate: the available data is not sufficiently comparable or the taxpayer does not choose the provider directly. The criteria below remain the relevant checks.
Decision
Four checks before deciding
Request a quantified written answer where a product exists. Marketing material does not replace full terms, complete fees or a suitable proposal.
02
Vesting
Read the rules applying on departure, change of employer and during any waiting period.
03
Fees and investments
Ask for the scheme rules, costs and available allocation even when the provider is fixed.
04
Separate tax allowance
The €1,200 limit is separate from the €4,500 individual article 111bis allowance.
Analysis
Who is it for, why use it and what goes wrong?
Potentially suitable if…
- An employee whose employer offers a scheme accepting personal contributions.
- An employee benefiting from matching or attractive collective terms.
Less suitable if…
- A self-employed person or employee without an eligible occupational scheme.
- Someone assuming they can freely choose an external provider.
Common mistakes
- Adding employer contributions to the personal limit.
- Ignoring the rules on changing employer.
- Comparing the deduction without valuing employer matching.
Advantages
- + Allowance separate from article 111bis.
- + Possible access to collective terms.
- + Employer matching may be decisive.
Drawbacks
- − Provider and investments are usually imposed.
- − Departure and transfer rules are scheme-specific.
- − Capital remains unavailable until a permitted event.
Worked example
Example: €100 per month
A €100 monthly personal contribution reaches the €1,200 annual limit. If other actual special expenses have not exceeded €480, only the portion above that allowance produces an additional reduction in taxable income.
2026 rules
What the calculator includes
- Personal contributions are deductible up to €1,200 per year.
- The plan must qualify as an eligible occupational pension scheme.
- Personal contributions must not be confused with employer contributions.
- The calculator includes the standard €480 special-expense allowance.
Frequently asked questions
FAQ Employer pension plan
Does the €1,200 limit replace the third-pillar limit?
No. Personal occupational-plan contributions and individual article 111bis contracts have separate limits.
Can I choose the pension provider?
Usually not. The employer sets up the scheme; employees should review its rules.
What happens when I change employer?
Vesting, preservation, transfer or repayment depend on the scheme rules and applicable law.
Related reading
Explore Luxembourg tax and pay
Luxembourg income-tax brackets 2026
Review all 23 brackets, marginal rates and worked income examples.
OpenCompany cars in Luxembourg
Calculate the benefit in kind and estimated monthly take-home cost.
OpenTax classes 1, 1a and 2
Understand how household circumstances affect the tax calculation.
OpenGross-to-net calculator 2026
Connect the tax scale, social contributions and estimated take-home pay.
Open