On 16 July 2026, the Chamber adopted a reform of the supplementary free pension for the self-employed (PLCI/VAPZ). Two changes stand out: the contribution ceiling is raised, and many people self-employed as a secondary occupation, who were previously excluded, can now join. These changes apply to the whole of income year 2026. For company directors, however, they must be considered in combination with the individual pension commitment (EIP/IPT) and the 80% rule, while group insurance follows a separate, collective logic.
Three tools, three logics
The PLCI
The PLCI is taken out by self-employed persons in their own name, whether they operate as a sole trader or through a company. Contributions are deductible for personal income tax purposes as business expenses and are treated for tax purposes as social security contributions: they therefore reduce not only the taxable base but also, over time, the basis for calculating social security contributions. For a self-employed sole trader, this double tax and social saving generally makes the PLCI the first tool to consider. Deduction does, however, require the self-employed person to be up to date with their social security contributions, and the social PLCI also provides solidarity benefits, notably in the event of incapacity for work, to which at least 10% of the total premium must be allocated.
The EIP
The EIP, by contrast, is taken out by a company for the benefit of a self-employed director. The premiums are borne by the company and may be deductible business expenses, provided the tax conditions are met, in particular the 80% rule, which limits the total of the statutory pension and supplementary pensions in relation to the last normal gross annual remuneration. The EIP often makes it possible to build up substantially larger amounts than the PLCI and generally offers greater flexibility in investment policy, notably through branch 23; depending on the contract terms, it may also help finance a property project, by means of an advance or a pledge. Its funding capacity does, however, depend on the director's normal and regular remuneration, career, reserves already built up and the margin available under the 80% rule. Premiums are also subject to a 4.4% tax.
For self-employed persons without a company, a similar mechanism exists: the pension agreement for self-employed workers (CPTI/POZ).
Group insurance
Group insurance, finally, is set up by an employer for the benefit of a category of employees or all of them. It is governed by collective rules — membership, contributions and cover must comply with the defined categories and the rules applicable to employees' supplementary pensions. Unlike the PLCI, it is therefore not an individual choice by the worker; unlike the EIP, it is not tailor-made for a single director. It nevertheless remains important when analysing a future EIP: rights already accrued under group insurance with a former employer form part of the supplementary pensions to be taken into account when calculating the 80% rule, and may therefore reduce the funding margin available within the company.
À retenir
The simplistic rule that you should always start by maximising the PLCI is not universal. It generally remains the priority for a self-employed sole trader. For a company director, the EIP can be more powerful, but its margin depends in particular on remuneration and on rights already accrued under the PLCI or a group insurance scheme. The PLCI and the EIP can therefore be combined for a self-employed director, but their combination remains subject to limits.
For income year 2026, the maximum contribution rate rises from 8.17% to 8.50% of the reference professional income for an ordinary PLCI, and from 9.40% to 9.78% for a social PLCI.
The increase is optional: it does not apply automatically to existing contracts. The contract must be amended and, where appropriate, an additional payment made in order to use the new ceilings for the whole of 2026.
The second change concerns access for those self-employed as a secondary occupation. Until now, a person self-employed as a secondary occupation could in practice only access the PLCI if they paid social security contributions comparable to those of a person self-employed as a main occupation, which in 2026 meant a reference income of at least €17,374.08 and excluded many secondary self-employed workers. The threshold is now lowered to €1,922.16, the level below which no social security contribution is due for the secondary activity. For example, with a reference income of €10,000, a person self-employed as a secondary occupation will be able to pay up to €850 into an ordinary PLCI or €978 into a social PLCI. The reform also opens the PLCI to people starting out as secondary self-employed, who were previously structurally excluded, and to self-employed persons benefiting from the assimilation scheme under Article 37, subject to the applicable income threshold.
For company directors, the higher PLCI ceiling does not necessarily mean paying in the maximum as a matter of course. The capital built up in the PLCI is taken into account when applying the 80% rule to the EIP: there is therefore a communicating-vessels effect, as a higher PLCI may reduce the margin available for deductible EIP premiums. The PLCI nevertheless retains significant advantages: it generates savings on personal income tax and social security contributions, is not subject to the 4.4% tax on premiums, and remains deductible within the scheme's own limits even when the company no longer has any margin under the 80% rule to fund the EIP. For self-employed persons without a company, it generally remains the first tool to consider before a pension agreement for self-employed workers (CPTI).
Conversely, the EIP may be more suitable where a company has sufficient margin and wishes to fund the director's pension: it generally allows larger amounts to be invested, possibly through a catch-up premium within the permitted limits, and offers access to broader diversification. Its appeal may, however, be limited where the director draws a low salary or has already accumulated substantial reserves under a former group insurance scheme. The comparison should therefore not focus solely on the immediate tax deduction: it should also factor in the actual financial effort, the tax on premiums, fees, cover, investment vehicles, taxation on payout, death and incapacity cover needs and any property projects.
WORTH NOTING: DIFFERENT TAXATION WHEN THE CAPITAL IS PAID OUT
Before tax, the capital is reduced by a 3.55% INAMI/RIZIV contribution and a solidarity contribution of 0 to 2%. Profit-sharing is exempt under certain conditions.
PLCI — notional annuity (taxed at progressive personal income tax rates + municipal surcharges):
- 3.5% for 13 years (payout at 60)
- 4% for 13 years (aged 61–62)
- 4.5% for 13 years (aged 63–64)
- 5% for 10 years (from age 65)
This notional annuity is added to the beneficiary's other taxable income and subject to personal income tax plus municipal surcharges. If the capital is paid out at the statutory pension age (currently 66) or after a full 45-year career with actual activity during the last 3 years, only 80% of the net capital is converted into a notional annuity.
EIP — separate, immediate taxation (+ municipal surcharges):
- 20% at 60 without taking a pension
- 18% at 61 without taking a pension
- 16.5% between 62 and statutory pension age, or on early retirement
- 10% from statutory pension age or after a full career (actual activity during the last 3 years)
The CPTI is also subject to separate taxation of the capital (no notional annuity); a harmonisation of self-employed pension schemes has been announced but not yet adopted.
In practical terms, you should check with the insurer, pension provider or intermediary whether the PLCI contract can be adapted to the new ceilings and whether an additional premium can still be paid for 2026. For secondary and newly self-employed persons, the reference income should be checked and eligibility for the new regime confirmed. For company directors, the 80% rule must be recalculated before increasing PLCI or EIP premiums, taking into account any reserves built up with former employers. In all cases, the comparison should cover net cost, fees, risk cover, investment vehicles and taxation on exit, rather than being limited to the deductible amount alone. Finally, for employers, the rules and funding of the group insurance scheme must be reviewed separately: the PLCI reform does not directly change the collective scheme for employees.
The broadening of the PLCI is above all a step forward for secondary self-employed workers, many more of whom can now build up a tax-efficient supplementary pension; the increase in ceilings, on the other hand, remains relatively modest. For company directors, the main issue is less about choosing between the PLCI and the EIP in the abstract than about finding the most effective combination: in some situations it may make sense to maximise the PLCI, in others it will be better to keep more margin for the EIP, depending on remuneration, career, reserves already built up, investment profile and wealth-planning goals. Group insurance, for its part, should be analysed in its collective logic when set up by the company, but also as part of the director's pension history where they previously worked as an employee. Periodic review of contracts is therefore recommended, as ceilings evolve, income and remuneration change, accrued reserves grow and tax rules continue to be refined.
As every situation is different, BFS can help you review your supplementary pension strategy and adapt it to the new 2026 rules.