Salary and the pension contribution base
Where a calculation starts with full-time salary, the full-time franchise is normally deducted before applying the part-time factor. ABP explains that the factor applies to both pensionable income and the franchise. Do not simply deduct the whole full-time franchise from an already reduced part-time salary.
A proportional example
For illustration only, assume a €50,000 full-time salary, a €17,545 franchise and a 1.875% annual accrual rate. Full-time annual pension accrual is (€50,000 − €17,545) × 1.875% = €608.53. At 60% working hours it is €365.12, or 60% of full-time accrual. These are example inputs, not the stated 2026 parameters of your scheme. A defined-contribution scheme works with contributions and assets; the same annual accrual rate cannot simply be applied to it.
The Wtp does not abolish the franchise
The Future Pensions Act does not remove the franchise from tax-favoured old-age pension accrual. The Tax Administration publishes a standard 2026 Wtp franchise of €19,172 and permitted lower variants. Your scheme may use a different permitted amount. A contribution percentage therefore does not automatically apply to your entire salary.
What to check before reducing hours
Ask your pension administrator about pensionable pay, the franchise, your part-time factor and the effect on old-age and partner pensions. Request a projection for your preferred hours and retirement date. Lower income may also affect your capacity to save privately. Assess your household budget; this example is not a personal recommendation about working hours.
Frequently asked questions
Does working 60% mean only 38% pension accrual?
Not in this example. Applying the franchise proportionately gives €365.12, exactly 60% of €608.53.
Does the Wtp remove the franchise?
No. Tax franchises still apply to old-age pensions. Check which permitted variant your scheme uses.
Sources and reference date
Reference date: 27 October 2026. Check current conditions before making a decision.