The Bundestag has passed the active pension. However, the Bundesrat still has to approve it at the Bundesrat meeting on 19.12.2025 before it can come into force.
Anyone who reaches the statutory retirement age (67 years of age, including transitional arrangements for those born up to 1963) and continues to work can receive up to €2,000 per month tax-free from January 1, 2026 (active pension). This benefit is granted regardless of whether the taxpayer draws a pension or, if applicable, postpones drawing a pension.
New: Pensioners may only earn an additional €2,000 per month tax-free from the month following the month in which they reach the standard retirement age. This change is intended to simplify the taxation procedure, as the income does not have to be divided into a taxable and a tax-free part in the month in which the standard retirement age is reached.
Income from self-employment, commercial operations and agriculture and forestry as well as civil servants and marginally employed persons who are active beyond the standard retirement age are excluded from the regulation. Whether this preferential tax treatment of „employee pensioners“ violates the principle of equal treatment under Article 3 of the German Basic Law is an open question.
Consideration in the wage tax deduction procedure
The tax exemption is already taken into account in the wage tax deduction procedure. If the taxpayer wishes to claim the tax-free allowance in an employment relationship with tax class VI, they must confirm to the employer that the tax exemption is not already taken into account in another employment relationship. The employer must then add this confirmation to the payroll account. This makes it possible, for example, for company pensioners and civil servant pensioners to claim the tax-free allowance without having to change the tax class for their (company) pension.
No progression proviso but social security contributions
The tax-free income is not subject to the progression proviso in accordance with § 32b EStG. However, the income remains subject to social security contributions. Contributions to health and long-term care insurance must therefore be paid. In addition, (only) employers must pay contributions to pension and unemployment insurance.
An amendment to Section 1 para. 1 sentence 1 no. 1 SvEV clarifies that payments made by the employer in addition to the regular salary continue to count as remuneration subject to contributions if they are only tax-exempt on the basis of Section 3 no. 21 EStG (new).
Advertising expenses: The lump sum for income-related expenses is not to be reduced in accordance with Section 3c (1) EStG. However, according to Section 3c EStG, expenses may not be taken into account as income-related expenses if they are directly economically related to tax-free income. This means that the actual income-related expenses may have to be allocated according to the ratio of taxable income to total income.