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Germany’s Labor Minister Signals Openness to Retirement Based on Contribution Years

Her remarks put the contribution‑years model on the table ahead of a government pension commission due to deliver proposals in mid‑2026.

Overview

  • Arbeitsministerin Bärbel Bas said she views tying retirement eligibility to years of contributions as a “basically good” idea, a shift that could allow early starters to retire sooner and require later starters, such as many academics, to work longer.
  • The debate follows Friday’s Bundestag passage of the latest pension package, with the government preparing to appoint a pension commission before Christmas to craft broader reforms for mid‑2026 consideration.
  • For 2026, the federal government set new social‑insurance thresholds: the health and long‑term care contribution ceiling rises to €5,812.50 per month, the pension insurance ceiling to €8,450 per month, and the insurance‑obligation threshold to €77,400 per year.
  • Rules for severely disabled people change from 2026, shifting the age for an unreduced pension for relevant cohorts by two years to 65, with early retirement from 62 incurring a 10.8% reduction.
  • Voluntary statutory pension contributions adjust in 2026, with a minimum of €112.16 per month and a maximum of €1,571.70 per month, and back payments for 2025 permitted until March 31, 2026.