Agricultural old-age insurance; receipt of a contribution subsidy
Farmers subject to compulsory insurance receive a subsidy on their contribution under certain conditions.
Entrepreneurs and their spouses who are required to pay contributions to the old-age insurance scheme for farmers can receive subsidies on their contributions to the old-age insurance scheme for farmers, graduated according to their economic situation. Beneficiaries to date have been entrepreneurs with an agricultural business up to a total income of €15,500 per person (together therefore €31,000).
From April 1, 2021, the previous income limits will be increased to 60 percent of the reference amount in social insurance and thus made dynamic. From that date, the income limit will then be EUR 23,680 per person or EUR 47,360 for married couples. The yardstick is the annual income of the farmer and his or her spouse, which is allocated half to each spouse. This also applies if the spouse is not subject to compulsory insurance. An agreed matrimonial property regime or an allocation under tax law shall not be taken into account. The annual income to be imputed is made up of the types of income according to tax law. Loss compensation among the types of income is excluded.
The contribution subsidy is linked to the amount payable. Up to an annual income of €8,220, the subsidy amounts to 60% of the contribution (2021: EUR 258; new federal states EUR 245). Thereafter, the contribution subsidy decreases by 4% of the contribution for every EUR 520 in income (graduated contribution subsidy 2021: between EUR 10 and EUR 155; in the new federal states between EUR 10 and EUR 147).
The previous system of contribution subsidy classes will be replaced by an individual calculation of the subsidy amount from April 1, 2021. A calculation formula will be introduced for this purpose. The full contribution subsidy will be granted for an annual income of up to 30% of the reference amount.
Source: Social Primer, 21.10.2022
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