The planned tax exemption for overtime bonuses is facing delays and may not be implemented as quickly as initially anticipated. Originally, the Federal Ministry of Finance intended to introduce the regulation alongside a new initiative known as the “Aktivrente” (Active Pension), but this provision has now been omitted from a revised draft, according to reports from government and coalition sources cited by the Handelsblatt newspaper.
The revised draft, currently undergoing preliminary coordination within the German government, focuses solely on the “Aktivbonus” a rebranded version of the original “Aktivrente” proposal. The tax-free overtime bonus element is no longer included.
A spokesperson for the Federal Ministry of Finance confirmed that a legislative proposal regarding the “Aktivbonus” will be presented shortly. Regarding the overtime bonus tax exemption, the spokesperson stated that it remains a commitment outlined in the governing coalition agreement and its implementation will involve close consultation with social partners – a reference to employer associations and trade unions, who have previously expressed reservations about the proposal.
The conservative political bloc (Union) continues to advocate for the simultaneous introduction of both the “Aktivrente” and the overtime bonus tax exemption at the beginning of 2026. A spokesperson for the Union’s finance policy team expressed surprise at the removal of the overtime bonus provision from the current draft, reaffirming their expectation that it will be implemented.