PLCI vs IPC: which one should you choose in 2026?
Instant comparison according to your profile + personalised recommendation.
Statutory rates updated on
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PLCI/VAPZ vs IPC: the recommendation depends on your structure (working in your own name or through a company) and your profile as a director.
Comparison table at a glance
PLCI
IPC
Who can take it out?
Any self-employed person (in their own name or as a company director)
A company director who receives regular remuneration
Who pays the premium?
The self-employed person (in their own name)
The company (deductible expense)
Annual ceiling 2026
8.17% of income (max €4,086.34) or 9.4% (max €4,701.54) for the social PLCI
Limited by the 80% rule (ITC 92, art. 59)
Tax advantage
Personal income tax deduction at the marginal rate (≈50%) + savings on social security contributions (~20.5%)
Corporate income tax deduction (25% standard / 20% SME)
Tax at payout
Converted into a notional annuity taxed under personal income tax (art. 73 ITC)
10% on the pension capital + NIHDI (INAMI) levy 3.55% + solidarity contribution
Cover included
Social PLCI: incapacity + death + maternity + invalidity
Optional (incapacity, death of the director, back-service guarantee)
Can they be combined?
Yes, it reduces the room left for the IPC under the 80% rule
Yes, the 80% rule calculates the total supplementary pension
When should you favour the PLCI?
- You work in your own name (no company): it is your only lever.
- Your net income exceeds €49,000: you are in the 50% marginal personal income tax bracket plus municipal surcharges, so the leverage effect is at its highest (~3.3×).
- You want the social cover included → social PLCI (9.4%).
When should you favour the IPC?
- You have a company (SRL/BV or SA/NV) paying you a regular remuneration.
- You have already maxed out your PLCI and the 80% rule still leaves room.
- You want to use the IPC capital to finance a property (advance or assignment as collateral).
Comparison FAQ
Frequently asked questions about choosing between the PLCI and the IPC
Yes, and that is the most common situation for a company director. The PLCI is deducted from your business expenses as a self-employed person; the IPC is funded and deducted by the company. The comparison helps you decide the order and the amounts, not choose one over the other.
For a comparable budget, the net cost after tax and contribution savings, and the capital built up. It shows that the two schemes have neither the same deduction base, nor the same ceiling, nor the same tax treatment at payout.
No. The IPC requires a company that pays its director a regular remuneration. A self-employed person working in their own name has access to the POZ/CPTI (pension agreement for the self-employed), which has the same aim with different tax mechanics. The POZ/CPTI page sets out its ceilings and tax treatment.
Because of the 80% rule, which limits deductibility according to the total pension you are building up, measured against your last normal gross remuneration and the length of your career. A low remuneration therefore automatically caps the IPC.
No. It is an order of magnitude, calculated on the parameters you enter and the legal rates in force. A contractual proposal requires a review of your existing contracts and goes through an adviser or broker registered with the FSMA.
The PLCI, in the vast majority of cases: it is available without needing a company, immediately deductible, and the premium can vary freely from year to year. The IPC comes next, once the company generates stable funding capacity.