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Self-employed · Grow your business

Supplementary pension (PLCI) 2026: what does a premium really cost?

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Calculate the real cost of my premium

In 2026, you can deduct a supplementary pension premium for the self-employed (PLCI/VAPZ) of up to 8.17% of your reference income, with a maximum of €4,086.34 (social PLCI: 9.4%, up to €4,701.54). Because it is deducted from your income, the premium reduces both your tax and your social security contributions: on €50,000 of profit, as a single person, a premium of €3,000 really costs you only €1,291.

For it to count towards your 2026 income, pay it in 2026, i.e. before 31 December 2026, and check that your social security contributions for the year are fully paid.

€4,086.34maximum deductible premium in 2026, ordinary PLCI (8.17% of reference income)
€4,701.54in social PLCI (9.4%)
57%of the premium comes back to you through tax and contributions, on €50,000 of profit
31 Decemberlast day to pay the 2026 premium

What a €3,000 premium really costs

Single self-employed person as a main occupation, no children, municipal tax of 7%. Profit is for the year, before social security contributions and before the premium.

Profit before contributionsLess taxLess contributionsReal costShare recovered
€30,000€775€371€1,85438%
€50,000€1,199€510€1,29157%
€75,000€1,332€510€1,15861%
€100,000€1,406€372€1,22259%
Ordinary PLCI, premium of €3,000 paid in 2026. Indexo calculation: the premium reduces taxable income and the base for social security contributions. Note: at €30,000 of profit, the estimated ceiling (€2,181.21) is below the premium: the excess is not deductible.

And with the maximum premium?

Profit before contributionsMaximum premiumReal costShare recovered
€30,000€2,181.21€1,03553%
€50,000€3,635.35€1,56457%
€75,000€4,086.34€1,57761%
€100,000€4,086.34€1,66459%
Maximum premium estimated with this year’s income (the real ceiling depends on your income three years ago).

The PLCI pays off most when your income is taxed in the higher brackets while staying below the first contribution ceiling (€75,024.54 of net taxable income): each euro paid in is then deducted at your highest tax rate and reduces your contributions by 20.5%. Above that ceiling, the contribution saving drops to 14.16%, then to zero.

The 2025, 2026 and 2027 ceilings

The ceiling is calculated on your reference income: your revalued net taxable earned income from three years earlier. For 2026, that is your 2023 income, multiplied by 676.50 / 630.85.

Option202520262027
Ordinary PLCI8.17%, up to €4,000.448.17%, up to €4,086.34Not yet published
Social PLCI9.4%, up to €4,602.719.4%, up to €4,701.54Not yet published
Maximum deductible contribution, FPS Finance circular 2026/C/53. 2027: not yet published.

Why the premium also reduces your contributions

Your social security contributions are calculated on your net taxable earned income. The PLCI premium is deducted from that income as a professional expense: it therefore lowers the year’s tax and the final contribution for the same year. The contribution saving appears at the adjustment, once your fund knows your actual income. Below the minimum calculation income (€17,374.08), the minimum contribution is still due: the premium then only reduces tax.

The conditions

  • Be self-employed (as a main or secondary occupation) or an assisting spouse, and join a fund or an insurer.
  • Have paid your social security contributions for the year in full.
  • Stay below the ceiling: the part above it is not deductible.

On payout

The capital is paid out at retirement. It is then subject to a contribution of 3.55% to the National Institute for Health and Disability Insurance (NIHDI), a solidarity contribution of 0 to 2%, then a tax calculated on a notional annuity, spread over several years.

Company directors: the individual pension commitment (IPC)

If you work through a company, the company can pay the premiums of an individual pension commitment (IPC) for you. They are deductible for the company if your statutory and supplementary pension, as an annuity, does not exceed 80% of your last normal gross annual remuneration, and if you are paid at least monthly. A tax of 4.4% applies to the premiums. Calculate the effect of an IPC premium on your net income and on corporate income tax with Pay for the director of an SRL.

Calculate the real cost of my premium

Enter your profit and the premium you plan to pay: Indexo calculates the tax and contributions saved, the real cost and your ceiling. Add the 31 December reminder to your calendar. Nothing is sent: everything is calculated in your browser.

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Frequently asked questions

Until when can I pay my PLCI premium for 2026?

Until 31 December 2026: the premium is deducted from the income of the year in which it is paid. Allow your bank and your provider a few days so the payment is recorded in time.

What happens if I exceed the ceiling?

The part above the ceiling is not deductible: it reduces neither your tax nor your contributions. Your 2026 ceiling usually appears on the certificate from your fund or pension provider; Indexo estimates it if you enter your income from three years ago.

PLCI or pension savings: which pays off more?

Pension savings give a tax reduction of 30% up to €1,050, or 25% up to €1,350. The PLCI is deducted at your marginal tax rate, often 45% or 50%, and also reduces your social security contributions. Per euro paid in, the PLCI therefore usually pays off more for a self-employed person whose income is above the minimum.

Why choose the social PLCI?

Its ceiling is higher (€4,701.54 instead of €4,086.34 in 2026), and part of the premium funds solidarity benefits, for example in case of incapacity for work. The details depend on your provider.

What next?

Sources

Parameters in force on 1 October 2026. Each parameter links to its source, the official one where it exists; a secondary source is flagged as such.