Calculating with progressive accrual calculations

You calculate the employed persons' insurance contributions on the basis of progressive accrual calculations. You then use the tax base increment method. In this method you calculate the accrual wages for contribution purposes for each employee during the wage periods including the current wage period for which you will be filing the return. You then deduct the amount of the accrual wages for contribution purposes for each employee during the wage periods prior to the current wage period. The difference is the increment in the accrual wage for contribution purposes. You calculate the contributions on this increment.

Note!

The progressive accrual calculation method is not applicable to wage tax/national insurance contributions. You carry out these calculations using the period tables. More information about the period tables is available under Calculating wage tax/national insurance contributions.

Example

The maximum monthly wages for contribution purposes for the employed persons' insurance contributions are € 1,200*. The wage period is 1 month. Pursuant to the base increment method you calculate the increment as follows:

Wage period

Wage for employed persons’ insurance schemes

Accrual wages for employed persons’ insurance schemes

Accrual of the wage period amounts

Accrual wages for contribution purposes

Increment per wage period

January

€ 1,500

€ 1,500

€ 1,200

€ 1,200

€ 1,200

February

€ 1,000

€ 2,500

€ 2,400

€ 2,400

€ 1,200

March

€ 1,000

€ 3,500

€ 3,600**

€ 3,500

€ 1,100

* To clarify the method, this example employs fictive amounts for the maximum wages for contribution purposes.
** The accrual wage for contribution purposes is the lowest of the accrual wages for employed persons’ insurance schemes and the accrual of the age period amounts.

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