Overview

• The coalition’s draft grants up to €2,000 per month tax-free to people who work past the regular retirement age in socially insured employment, with the progression clause removed.
• Eligibility excludes the self-employed, freelancers, farmers, civil servants, most minijobs, and those on early retirement, with the tax break applied directly via employer payroll (ELStAM) without an application.
• A government draft projects about €890 million in annual tax shortfalls shared by federal, state, and municipal budgets, and the measure is time-limited with a formal review planned.
• The Aktivrente is part of a wider package that includes a projected rise in the pension contribution rate to 18.8% in 2027 and 2026 changes that raise the earnings needed for one pension point.
• Unions, social groups and associations for the self-employed argue the policy favors healthier salaried retirees, citing official data on low senior incomes and rising old-age basic security.