Overview

• The cabinet approved the Zweite Betriebsrentenstärkungsgesetz and sent the draft to the Bundesrat, with implementation targeted for 1 January 2026.
• The proposal enables automatic enrolment with an opt‑out, allows higher risk and return in saving strategies, and increases tax support for occupational pensions.
• Employers’ subsidy for low earners in classic company plans would rise to up to €100 per month, available up to roughly €2,575 in monthly pay and indexed to the pension contribution ceiling.
• The law would expand the Sozialpartnermodell so firms can join sectoral collective pension schemes outside their industry and lets non‑tariff workplaces offer plans via works agreements.
• The government estimates about €155 million in annual budget costs for the tax measures, noting coverage stood at roughly 52 percent of employees in 2023 as some opposition voices call the step insufficient.