Working more or less hours
If you are going to work more or less hours, this often affects your pension. Are you working more hours? Then you will also accrue more pension. And if you work less, your pension will be lower in many cases. Below you can read what the consequences are of working more or less hours.
Have you decided to work some more? Then not only your salary, but also the amount of your old-age pension and your survivor's pension will change. You will also pay a higher pension contribution. Sometimes you might want to work a little less for a while. For example, because you want more free time, have young children or are about to retire. In that case, your pension will often be lower and your partner and children will receive less pension if you die. You will then also pay a lower pension contribution.
When does working less affect your pension?
For your pension accrual, it matters in what way you will (temporarily) work less. Below are a number of situations. We explain for each situation whether this has consequences for your pension.
1. No impact on pension
Taking holiday, pregnancy leave and maternity leave
Are you taking your holiday days or are you taking leave around your child’s pregnancy and birth? Then you will be paid your normal salary. This also has no consequences for your pension accrual. It just continues.
2. Possible impact on pension
Unpaid leave or sabbatical
If you take unpaid leave, you will receive more free time while you remain employed with your employer. Ask your employer or pension provider what consequences taking leave has for your pension accrual. If you die during the leave period, your partner is usually be entitled to a partner's pension.
Parental leave
Do you have children and do you want to temporarily work less? Then you can start working less contractually, but then you also accrue less pension. It could be more convenient to use parental leave. You are legally entitled to this. Sometimes you will accrue the same amount of pension. Ask your employer or pension provider about this. You can find more information about parental leave on the website of the Government.
3. Impact on pension
Working part-time
Are you choosing to work part-time for another reason? For example, because you want more time for yourself, are a caregiver or because you are about to retire? Then you accrue less pension. You make agreements about this with your employer and he/she will inform your pension provider thereof.
Please note: Just before you retire, you have to make a number of choices. For example, if you want to partially retire earlier. These choices also affect your pension. You can see more about this in the animated video about pension choices.
Demotion
Towards the end of your career, you can choose to change to a position with, for example, less work-related stress. However, working in another (lower) position with a lower salary also has consequences for your pension. The pension accrual therefore becomes lower. There is a legal solution for this: demotion. For the last 10 years before your retirement date, you can continue to base your pension accrual on the older, higher salary. You coordinate this with your employer or pension provider.
Would you like to know more about the consequences of working more or less hours? Please contact your pension provider(s).
