The question of paying contributions for retired persons who are company members/owners is often raised. It is important to distinguish their role and status within the company, as obligations differ depending on whether the person performs the function of a director or a procurator, or is only registered in the court register as a company member/owner (without any management function).

1. Retired person (company member/owner) as a Procurator (without a Director’s Function)

According to current regulations, company members who are not registered as board members (directors) have no obligation to pay contributions on that basis. A retired person who is exclusively a procurator, and not a board member (director), does not have to pay mandatory social contributions on that basis.

Important Note: If the procurator receives a fee for performing procuratorial duties, this fee is subject to taxation as other income. In this case, the company is obligated to calculate and pay the prescribed contributions for pension and health insurance, as well as income tax.

Retired company member/owner in Disability Pension:

A retired person (company member) with a disability pension due to partial loss of work capacity cannot re-establish an employment relationship without losing the right to their pension. Therefore, to remain an active company member and avoid losing their pension, they can perform the function of a procurator instead of a director. In this case, the above rules for procurators apply.

2. Retired person (company member/owner) as a Director (Board Member) in an Employment Relationship

A retired person (company member/owner) can perform the function of a board member (director) and be in an employment relationship with the company (in which they are also a company member and director, or be employed by another independent company). According to the laws, they have the option of establishing an employment relationship with working hours up to 4 hours per day (i.e., up to a half-time) and in that case, they retain the right to their pension payment. In this case, the retired company member who also holds the function of a director/board member is obligated to pay all prescribed contributions for board members, proportional to the working hours (and the burden of which is borne by the employer).

3. Retired person – Company Member and Board Member/Director (without an Employment Relationship)

A retired company member who is also an appointed board member/director, but is not in an employment relationship, i.e., is not insured for mandatory insurance on another basis, becomes a self-insured person from the day of retirement who is obligated to pay contributions on the prescribed entrepreneurial basis at their own expense, which for 2025 amounts to €1,798.00.

It is crucial to precisely distinguish the role and status within the company to correctly determine the obligations. For all additional questions and accurate calculations, please contact our expert team.

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