The company pension scheme (bAV) (or occupational pensions) is a true all-rounder today: It allows your company to noticeably reduce payroll-related costs through salary conversion or employer contributions while simultaneously strengthening employee loyalty and motivation. Your team directly benefits from a tax- and social security-privileged retirement plan that significantly improves their financial security in old age. Here’s how bAV pays off for your business – and why it’s a valuable cornerstone of your employees’ retirement planning.
Benefits for Your Company
Cut Costs Smartly
Implementing a modern bAV solution brings substantial cost-saving effects and enhances your employer brand. Through salary conversion, you reduce ancillary wage costs: Up to €7,728 per year can be invested tax-free into a direct insurance policy, pension fund, or pension scheme. Of this amount, up to €3,864 is also exempt from social security contributions, leading to employer-side savings of around 19%.
Employer contributions of at least 15% on converted amounts – as required by § 1a of the German Occupational Pensions Act (BetrAVG) – serve as an additional lever: You invest in your employees’ futures without increasing their net salary costs.
Stand Out as an Attractive Employer
A compelling bAV offering has a proven positive impact on your employer branding. Over 80% of professionals consider occupational pension benefits a key factor when choosing an employer. By providing a generous bAV package, you demonstrate genuine concern for your team’s long-term security – a powerful differentiator in the race for top talent.
Companies with strong bAV participation also see lower employee turnover, as staff are more likely to stay with employers who support their financial well-being in retirement.
Leverage Tax Benefits
The bAV is also a powerful tool for tax optimization: Every euro contributed via salary conversion reduces the employee's taxable income, resulting in immediate tax savings at all levels. The liquidity gained can be reinvested into operational projects, directly contributing to your company’s competitiveness.
Benefits for Your Employees
Sustainable Retirement Planning
For your team, the bAV is a sustainable tool that offers security well beyond the state pension. Through salary conversion, employees can reduce their taxable gross income by up to €7,728 annually – lowering their taxes immediately while having more net income available. Additionally, contributions of up to €3,864 are exempt from social security contributions, providing further financial relief.
Additional Support
Employees are legally entitled to receive at least a 15% employer contribution on their converted amounts. This additional support enhances the efficiency of their retirement investments and increases their expected pension income.
Younger employees, in particular, value the bAV as a secure component of their long-term financial plan and see it as a sign that your company is investing in them and taking responsibility for their future.
Gain Security
The bAV provides your team with real planning security: Employees can plan their retirement with confidence and are not solely dependent on volatile capital markets. The wide range of implementation options – from direct insurance to pension funds to support funds – allows for individual solutions tailored to each employee’s needs and risk tolerance. The result: greater satisfaction, less future-related anxiety, and a stronger emotional connection to your company.
Conclusion: A Double Win
The occupational pension scheme is a rare opportunity where everyone benefits: Your company saves costs and gains a competitive edge in the battle for skilled professionals. At the same time, your team receives a valuable, tax-advantaged building block for retirement security.
With an attractive bAV solution, you’re investing not only in your employees’ futures, but also in the sustainable success and resilience of your company. A true win-win that pays off in every way.
