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3w ago

Germany's Pension Clash Escalates Over Plan to Make Civil Servants Pay In

Labour Minister Bärbel Bas's call to include civil servants and the self‑employed in the statutory scheme faces fierce union pushback, with the coalition emphasizing voluntary work‑longer incentives.

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Overview

  • Customs and finance union BDZ and the civil service federation dbb reject any obligation for beamte to join the statutory pension, warning of uncertainty and higher employer costs.
  • The IW Cologne estimates annual additional costs of roughly €20 billion if public employers cover full contributions for 1.9 million civil servants, or about €10 billion with shared financing.
  • EU finance ministers’ July recommendations urge Germany to promote longer working lives and curb early‑retirement incentives to bolster the system’s sustainability.
  • Economy Minister Katherina Reiche argues longer working lives are unavoidable, while SPD leader Lars Klingbeil condemns higher ages as unfair to physically demanding trades; some craftsmen back later retirement only with flexible job models.
  • Policy and tax changes shape behavior: since 2023 pensioners can earn without pension cuts, over 1.3 million worked while drawing pensions in 2022, and the 2025 Altersentlastungsbetrag grants 13.2% of extra income tax‑free up to €627.