Overview

• Chancellor Friedrich Merz said the black‑red coalition agreed the Arbeitsmarktstärkungsgesetz, targeting a 1 January 2026 start.
• The Aktivrente would let employees who have reached the statutory pension age earn up to €2,000 per month tax‑free.
• Eligibility excludes the self‑employed and those in early retirement.
• Overtime supplements up to 25% of base pay and one‑off bonuses of up to €4,500 for increasing weekly hours would be tax‑free.
• The measures remain a draft as employers’ and union leaders question cost and effectiveness, and supporters present them as a response to skilled‑labor shortages.