{"id":3390,"date":"2025-07-27T08:00:00","date_gmt":"2025-07-27T06:00:00","guid":{"rendered":"https:\/\/eastwing.nl\/kennisbank\/uncategorized\/what-are-the-consequences-of-the-30-percent-ruling-for-your-aow-accrual\/"},"modified":"2025-07-07T11:13:31","modified_gmt":"2025-07-07T09:13:31","slug":"what-are-the-consequences-of-the-30-ruling-for-your-aow-pension-accrual","status":"publish","type":"post","link":"https:\/\/eastwing.nl\/en\/knowledge-base\/30-ruling\/what-are-the-consequences-of-the-30-ruling-for-your-aow-pension-accrual\/","title":{"rendered":"What are the consequences of the 30% ruling for your AOW pension accrual?"},"content":{"rendered":"

As an international professional moving to the Netherlands, the 30% ruling<\/strong> offers attractive tax advantages. However, what many expats don’t realize is that this tax benefit has direct consequences for their AOW (state pension) accrual and future retirement. The Dutch pension system works differently than in many other countries, and the interaction between the 30% ruling and your AOW rights can lead to a significant pension gap. In this article, we explain how the 30% ruling affects your AOW accrual and which strategies you can use to maintain your pension at an adequate level.<\/p>\n

How does AOW accrual work in the Netherlands?<\/h2>\n

The Dutch pension system<\/strong> consists of three pillars, with the AOW (General Old Age Pensions Act) forming the first pillar. The AOW is a basic pension that is financed by premiums paid by employees and employers through payroll tax.<\/p>\n

You build up AOW rights by living and working in the Netherlands. For each year you live in the Netherlands between your 15th and 67th birthday, you accrue 2% AOW entitlement. After 50 years, you therefore receive 100% of the full AOW benefit.<\/p>\n

The AOW premium is calculated on your full taxable income. This is crucial to understand, because this is where the 30% ruling comes into play. As an international employee, you pay AOW premium on the part of your salary that is taxable.<\/p>\n

The link between living in the Netherlands and AOW rights means that you only build up AOW rights during the years you officially live in the Netherlands. This applies regardless of your nationality or the level of your income.<\/p>\n

What does the 30% ruling mean for your AOW premium?<\/h2>\n

The 30% ruling has a direct impact<\/a> on your AOW premium payments. Under this ruling, 30% of your gross salary is exempt from AOW tax benefit<\/strong> premiums. This means that your AOW premium is only calculated on 70% of your actual salary.<\/p>\n

A practical example: if you have a gross annual salary of \u20ac80,000, with the 30% ruling you only pay AOW premium on \u20ac56,000. The non-taxable portion of \u20ac24,000 is exempt from all social premiums, including the AOW premium.<\/p>\n

This exemption has two important consequences:<\/p>\n