Overview

• Retirees who continue in non-self-employed, social-security-subject jobs could receive up to €2,000 per month tax-free once they reach the statutory retirement age, pending parliamentary approval for a January 1, 2026 start.
• The tax-free allowance is excluded from the progression clause and will be implemented directly in payroll to raise net pay immediately.
• Self-employed workers, farmers, civil servants and minijobbers are not eligible, and employee health and long-term care contributions on wages remain due.
• The government estimates about 168,000 users in a year and foresees roughly €890 million in annual tax revenue losses shared by federal, state and local budgets.
• The bill now moves to the Bundestag as petitions from self-employed groups challenge the exclusion and young CDU/CSU lawmakers signal resistance within the governing bloc.