What is Factor A and how do you calculate it?

Factor A is an essential component of your annual allowance calculation. It determines how much fiscal room you have left to build up your own pension with tax advantages. For employees, Factor A sometimes means less annual allowance; for self-employed persons (zzp'ers), it means maximum room because their Factor A is zero. 

We explain exactly what Factor A is, where you can find it, and how to calculate with it. This way, you will know exactly how much you can contribute for your pension with a tax advantage.

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What exactly is Factor A?

Factor A is the amount your pension grew in one year through your employer. It shows how much pension you built up that year from the premiums you and your employer contributed.

It is important that your Factor A is not the total amount in your pension account. It is only the growth for that specific year. A Factor A of €800 means that your total future pension pot increased by €800 that year.

Are you a self-employed person (zzp'er) or entrepreneur? Then you likely do not have a Factor A (so Factor A = 0). After all, you do not build up a pension through an employer. This is good news for your annual allowance, which will be greater as a result.

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Where can you find your Factor A?

Factor A is located on the last page of your Uniform Pension Overview (UPO). You receive this overview every year from your pension administrator if you are building up a pension through your work.

Cannot find your Factor A?

• Check the last page of your UPO carefully again
• Have you had multiple employers? Add up all the Factor A amounts
• Lost your UPO? Log in with DigiD on mijnpensioenoverzicht.nl or with your pension administrator

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How does Factor A work in practice?

An example makes it clear. Your 2024 UPO shows a Factor A of €800. This means that you built up €800 in pension in 2023.

If you work for the same employer for fifteen years with a similar accrual? Then your pension will have increased by approximately €12,000 during that period (15 × €800). That amount is in addition to your state pension (AOW) when you retire.

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Why should you know Factor A?

Factor A determines how much annual allowance you have left. The Tax Authorities thus prevent double tax advantage: if you are already building up a pension through your work, you have less room to build up extra pension yourself with a tax advantage.

The rule is simple:

• High Factor A = you are already building up a lot of pension = less annual allowance remaining
• Low or no Factor A = you are building up little pension = more annual allowance remaining

This is good news for self-employed persons (zzp'ers) and entrepreneurs. No Factor A means maximum annual allowance, up to €35,798 per year in 2025.

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Calculating Factor A and annual allowance

For your 2025 annual allowance, you use the Factor A from 2024. The formula:

Annual allowance = (30% × premium base) – (6.27 × Factor A)

An explanation:

• Premium base = your income minus AOW-franchise (state pension deductible) (€17,000 in the example)
• You may use 30% of your premium base as annual allowance
• But first, you subtract 6.27 × your Factor A

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Factor A calculation example

In this example, you earn €60,000 and your Factor A is €2,000:

• Income: €60,000
• Minus AOW-franchise: €17,000
• Premium base: €43,000
• 30% of that: €12,900
• Minus (6.27 × €2,000): €12,540
• Annual allowance: €360

You may therefore contribute an extra €360 to your pension account with a tax advantage that year.

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Factor A in various situations

• As an employee

Check your UPO for your Factor A. The higher this amount, the less annual allowance you have left for extra pension accrual.

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• As a self-employed person (zzp'er) or DGA (director/majority shareholder)

Your Factor A is zero. That means maximum annual allowance to build up pension yourself with a tax advantage.

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• Multiple employers

Do you work for different employers? Add up all the Factor A amounts. You use the total for your annual allowance calculation.

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What now?

Do you know your Factor A? Then you can exactly calculate how much annual allowance you have. At Vive, we make it easy: fill in your details and we will do the Factor A calculation for you. This way, you will know precisely how much you can contribute with a tax advantage for your pension.

No Factor A because you are self-employed? Then you probably have the full annual allowance available to you. An excellent opportunity to work on your pension with a tax advantage.