Overview
- Parliament cleared the measure for a Jan. 1, 2026 start, and employers apply the €2,000 monthly allowance automatically once workers have reached the regular retirement age.
- The allowance applies to one socially insured job only, income above €2,000 is taxed, and the tax‑free portion does not raise the taxpayer’s rate through progression.
- Employees still pay statutory health and long‑term care contributions on the wage; typical examples put net take‑home from €2,000 at roughly €1,790 to €1,793 depending on individual contribution rates.
- Self‑employed workers, civil servants, mini‑jobbers, farmers and recipients of early retirement are excluded, drawing protests and threatened legal action from groups including VGSD and the taxpayers’ association.
- The government cites about 168,000 potential beneficiaries and roughly €890 million a year in tax relief, while economists question job gains and an evaluation is planned after rollout.