Side Hustle for the Gold Generation

According to the Active Pension Act, retirees who continue to work may earn up to EUR 24,000.00 per year tax-free from January 1, 2026 (i.e. EUR 2,000.00 per month).

In the case of higher earnings, only the portion in excess of this allowance is taxable.

Employees subject to social security contributions who have reached the statutory retirement age benefit from the active pension.

Contributions to health, long-term care, pension and unemployment insurance continue to be due.

Continued employment easier

As an employer, you can employ people as active pensioners who are starting with you for the first time, as well as existing employees who want to continue working after retirement.

The previously applicable „ban on subsequent employment“ was lifted as part of the 2025 pension package. This means that you can now continue to employ former permanent employees as active pensioners for a fixed term without a material reason.

Further advantages for employers

With active pensioners you can:
- Save or at least reduce your training time,
- mitigate the shortage of skilled workers and react more flexibly to staff shortages,
- Retain experienced employees and keep valuable knowledge within the company.

And by the way:

Tax-free incentives have no influence on the active pension. They must also be granted as an incentive to continue working after retirement.

Our tip for active pensioners

Unemployment and pension insurance contributions are only paid by the employer. However, active pensioners can make voluntary contributions to the pension insurance fund in order to acquire further pension entitlements.

👉 Do you have tax-related questions or concerns on this or other topics? Please contact us! We will be happy to advise you: www.wsb-berater.com/kontakt

#Active pension #Securing skilled workers #Personnel strategy #HRUpdate #Tax law #WSB