Tax
80% rule
By the Finances Indépendants editorial teamUpdated on 3 min readAlso known as: 80 percent rule, 80% ceiling, Règle des 80 %
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Contents
What does the 80% rule say?
Statutory pension + extra-statutory pension ≤ 80% of the last normal annual remuneration. It is a ceiling on what you end up receiving, not an amount you could pay in: the reasoning runs the opposite way to what most people assume.
The tax authorities check the total you will receive, across all schemes. If that total exceeds 80% of your last normal remuneration, the excess premium is not deductible. The penalty does not affect the contract, which remains valid, but its deductibility.
What goes into the calculation
Three elements are involved, and the confusion often comes from forgetting one of them.
- Statutory pension: the director's estimated statutory pension. It already takes up part of the ceiling, before any premium is paid.
- Extra-statutory pension: IPC + group insurance + NIHDI (the PLCI/VAPZ is outside the 80% rule). The PLCI/VAPZ is the exception and does not count.
- Reference remuneration: the last normal gross annual remuneration (regular, paid monthly). An exceptional bonus or a dividend is not part of it.
How the ceiling is calculated
You start from the normal gross annual remuneration, take 80% of it, subtract the estimated statutory pension, and the remainder is the annual supplementary pension that can still be built up. That annual remainder is then converted into capital using a capitalisation coefficient to obtain the allowable premium.
The career also comes into the equation, capped at 40 years. A career that is already long leaves fewer years to fund, a short one leaves more, which explains the large differences in premium from one file to another for the same remuneration.
The official calculation is carried out by the insurer or an actuary, based on career and remuneration data. No simulator replaces this certificate, which is the document the tax authorities examine.
Why the PLCI/VAPZ escapes the rule
The PLCI/VAPZ is calculated outside the 80% rule and can be freely combined with an IPC and the statutory pension. This exclusion stems from the PLCI/VAPZ's own scheme, set up by the Programme Act of 24 December 2002, which is separate from the scheme for directors' supplementary pensions.
That is what underpins the order of priority: filling the PLCI/VAPZ does not reduce the 80% ceiling, whereas filling the IPC or the POZ/CPTI uses it up.
What happens if you exceed it
The part of the premium that exceeds the ceiling loses its deductibility. For a company, it is added back to taxable profit; for an individual, it does not give entitlement to the tax relief. The contract itself is not cancelled.
An excess most often comes from a director's remuneration being cut without the premium following suit. A recalculation is wise whenever remuneration changes significantly.
Not to be confused with
The terms close to 80% rule and what sets them apart.
- 80% rule and PLCI/VAPZ ceiling
- The PLCI/VAPZ ceiling is a fixed annual amount, €4,086.34 in 2026. The 80% rule is a calculated ceiling, specific to your situation, and the PLCI/VAPZ is excluded from it.
- 80% rule and Replacement rate
- The replacement rate describes the share of income a pension actually replaces. The 80% rule is a tax limit on deductibility, not a standard-of-living target.
Further reading
80% rule: frequently asked questions
It limits the deductible supplementary pension: statutory pension and supplementary pension combined may not exceed 80% of the last normal gross annual remuneration, over a career capped at 40 years. Beyond that, the premium is no longer deductible.
No. The PLCI/VAPZ falls under a separate scheme and can be freely combined with the statutory pension and the other schemes. That is why it is filled first.
The IPC (individual pension commitment, EIP/IPT), the POZ/CPTI (pension agreement for the self-employed), group insurance and, more generally, directors' supplementary pensions. The statutory pension is not subject to it but does enter the calculation, since it takes up part of the ceiling.
The insurer or an actuary, based on your remuneration, your career and an estimate of your statutory pension. Your accountant checks it is consistent with the accounts. A simulator gives an order of magnitude, not the supporting document the tax authorities expect.
The excess part of the premium loses its deductibility and is added back to the company's taxable result, or does not give entitlement to the tax relief for an individual. The contract remains valid.
It is advisable whenever remuneration changes significantly, upwards or downwards. A cut in remuneration that is not reflected in the premium is the most common cause of an excess.
Official source
- FPS Finance, Income Tax Code (CIR 92). View (new tab)(Official source, accessed on 2026-09-19)