Pension insurance contributions for sick pay are not deductible

The compulsory contributions to statutory pension insurance included in sick pay, which are also taken into account in the progression proviso, are not tax-deductible.

Compulsory contributions to statutory pension insurance that are withheld and deducted from sick pay cannot be taken into account to reduce tax. With this ruling, the Cologne Fiscal Court ruled against a taxpayer who objected to the fact that the sick pay, including the pension insurance contributions contained therein, was subject to the progression proviso. Even though the subsequent retirement pension is also subject to tax, the court did not consider this regulation to be inadmissible double taxation because the payment of contributions would not directly trigger a taxable pension.