Overview

• The cabinet approved the Second Betriebsrentenstärkungsgesetz, which would take effect on 1 January 2026 pending passage in Bundestag and Bundesrat.
• The draft eases automatic enrollment via opting‑out, loosens rules for pension funds to allow higher risk‑return profiles, and boosts tax support.
• For low‑paid workers, the employer subsidy for classic occupational pensions would rise from €80 to €100 per month, with employers able to receive up to 30% of their contribution as a grant for employees earning up to €2,575 monthly, with the threshold tied to the statutory earnings cap.
• The plan expands the social‑partner model so non‑tariff firms can join sector arrangements and lets SMEs offer schemes via company agreements to widen access.
• The government estimates recurring fiscal costs of roughly €150–155 million per year; critics, including The Left, call the measures insufficient and warn of greater individual market risk, noting coverage stood at about 52% at end‑2023.