Germany is poised to implement a new initiative allowing senior workers to continue employment beyond the standard retirement age while earning tax-free income. According to reports citing sources within the governing coalition, the “active pension” – or “Aktivrente” – is currently slated for implementation beginning January 1, 2026.
The program aims to provide an opportunity for older employees to remain in the workforce and earn up to 2,000 euros per month tax-free. This initiative was agreed upon Friday by leading representatives from the CDU, CSU and SPD parliamentary groups as part of a broader pension package.
Legislative approval of the full package, including the active pension component, is anticipated later this year. The aim is for the program to be fully operational at the start of the new fiscal year, providing a new avenue for experienced workers and potentially addressing labor market demands.