Yes – salary conversion has an impact on your statutory pension insurance. Here you will learn what this specifically means.
What is salary conversion?
Salary conversion means that a part of your gross salary – which is normally taxed and subject to social security contributions – is converted into tax-free or tax-privileged benefits, such as the Hrmony meal allowance.
The result: You have a higher net income during your employment.
What impact does this have on my pension?
Through salary conversion, your entitlements in the statutory pension insurance decrease slightly. This is because pension entitlements are calculated based on your gross salary subject to social security contributions. Salary conversion particularly affects your so-called earnings points, which are decisive for the later pension amount.
Is salary conversion still worthwhile?
In most cases, yes. Because the monthly higher net salary you receive through salary conversion usually clearly outweighs the financial disadvantage in retirement. You can use this net surplus, for example, specifically for private retirement provision.
How significant the impact is in individual cases depends on various factors – especially the amount converted, your age, and the duration of using the benefit.
Calculate your individual situation
You can get a personal assessment of how salary conversion affects your pension using the pension calculator of the German Pension Insurance:
👉 Pension estimator of the German Pension Insurance
⚖️ Legal notice
Hrmony GmbH does not provide legal or tax advice. The information provided is for general informational purposes only and does not replace individual advice from a qualified legal or tax firm.
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