What is the premiegrondslag?

The premiegrondslag is the part of your income over which you are allowed to accrue a pension. It is calculated by subtracting the AOW-franchise and Factor A (pension accrual) from your gross income. The premium base forms the basis for determining your annual allowance, which is the amount you are allowed to contribute tax-free annually for extra pension accrual.

Example: If your gross income in 2024 is € 50,000, the AOW-franchise is € 18,475, and Factor A is € 0, then your premiegrondslag is € 50,000 - € 18,475 - € 0 = € 31,525.

You can then calculate your annual allowance based on this amount, which is an important factor in what you can ultimately contribute with tax benefits.