Calculation of the invalidity pension

Calculation of the pension amount

The invalidity pension is made up of the following pension components:

• fixed increases
• special fixed increases
• proportional increases and
• special proportional increases.

Fixed increases are granted on the basis of insurance duration, while proportional increases are granted on the basis of pensionable income earned during the insurance record.

To compensate for a premature interruption of the insurance record due to invalidity, special fixed increases are granted for prospective periods and special proportional increases are attributed for notional income; the density of the insurance record and the level of income before invalidity are taken into account respectively.

Since the Reform Act of 21 December 2012, the rates of fixed and proportional increases, the threshold applicable to proportional increases and the rise in the rate of proportional increases per unit over the given threshold have been determined on the basis of the year in which pension entitlement began.

The amount of the gross annual pension is calculated using the cost-of-living index number 100 and the 1984 as the base year. The amount thus obtained is adjusted using the current cost-of-living index and the revaluation factor in force and divided by 12 to obtain the monthly amount.

Fixed increases

Fixed increases are granted on the basis of the insurance record (compulsory, continued, optional or retroactive purchase insurance periods, additional periods) completed by the insured person. The number of years taken into account cannot exceed 40.

The fixed increases correspond, after an insurance duration of 40 years of compulsory, continued, optional, retroactive purchase or additional insurance periods, to a respective percentage rate of the reference amount. The rate of fixed increases is determined according to the year in which pension entitlement begins.

The annual reference amount at index number 100 and defined for the base year 1984 is equal to 2,085 euros. Fixed increases are calculated on a fortieth basis for each year of insurance completed or started.

Special fixed increases

Special fixed increases are based on prospective periods that fictitiously extend the insured person's career up to the age of 65.

For this purpose, the number of years between the start of entitlement to the pension and the age of 65 is taken into account in proportion to the number of insurance years and calendar years between the age of 25 and the start of the invalidity pension.

Clarification:
If the density of the insurance record between the age of 25 and the onset of invalidity is 80%, prospective periods can only be taken into account in the same proportion.

The total number of periods to be taken into account for fixed increases and special fixed increases may not exceed 40 years.

Proportional increases

Proportional increases are obtained by multiplying the sum of the pensionable income by a rate of increase.

Pensionable income is expressed as index 100 in relation to the base year 1984. The rate of increase varies according to the year in which pension entitlement begins. If, when the pension starts, the sum of the number of full years of compulsory insurance periods and the age of the beneficiary exceeds the given threshold, the rate of increase is raised for each year in which it exceeds the threshold. The rate of increase is capped at 2.05%.

Example: Rate of increase for an invalidity pension awarded in 2025
Basic data for the insured person
Age: 58
Compulsory insurance periods: 39 years

Calculation of rise over the given threshold: 58 + 39 = 97 - 95 = 2
Calculation of rate increase: 2 * 0.015 = 0.030
Increased rate of increase: 1.775 + 0.030 = 1.805%

Staggered proportional increases (higher rate of increase)

By providing for the principle of staggered increases in proportional increases according to the age and career of the beneficiary, the law has introduced a measure that should encourage people to continue working.

The staggered proportional increases apply to insured persons who receive a pension after 1 March 2002.

The law of 21 December 2012 reforming pension insurance modifies the conditions for granting proportional increases by stipulating that the total of the insured person's age and insurance duration must exceed a given threshold, which increases annually. Thus, in 2014, entitlement to staggered proportional increases will be at a threshold of 93 and in 2052 this threshold will rise to 100. However, the rate of staggered proportional increases will gradually rise from 0.01% per additional year in 2012 to 0.025 in 2052. Extending an active career is equivalent to more than doubling the rate applicable under the old legislation.

For 2025, the rate of increase of 1.769% is increased by one additional unit of 0.015% per year of age and one additional unit of 0.015% per year of insurance. However, this rate may not exceed 2.05%.

Special proportional increases

If, at the time the pension is awarded, the insured person has not yet reached the age of 55, the special proportional increases take account of notional income for the prospective period from the start of the pension until the age of 55.

The calculation is based on the average income earned by the insured person between the age of 25 and the start of the pension. The sum of notional incomes is obtained by multiplying the average annual income by the number of missing years between the start of the pension and the age of 55.

Special proportional increases are obtained by multiplying notional income by the rate of increase.

No special proportional increases are payable if the insured person is over the age of 55 when the pension is awarded.

Minimum pension

No invalidity pension can be less than 90% of the reference amount when the insured person has completed a qualification period of 40 years (compulsory insurance periods, continued insurance periods, optional insurance periods or retroactive purchase periods, additional periods).

If the insured person has not completed the 40-year qualification period, but has at least 20 years of insurance, the minimum pension is reduced by one fortieth for each missing year.

In order to verify the minimum pension qualification period, not only compulsory, continued, optional and retroactive purchase of insurance periods are taken into account, but also additional periods.

In the specific case of calculating an invalidity pension, the difference between the theoretical calculation of a minimum pension and the total of the fixed increases, special fixed increases, proportional increases and special proportional increases is referred to as the supplement to minimum pension.

As at 1 January 2025, the minimum monthly pension for 40 years is EUR 2,293.55.

If the sum of the fixed increases, special fixed increases, proportional increases and special proportional increases is less than the guaranteed minimum pension, the insured person receives a supplement to make up the difference.

Combinations with other incomes