Since 1 January 2026, employees in Germany who keep working after reaching the standard retirement age (Regelaltersgrenze) can earn up to €2,000 a month free of income tax. This is the Aktivrente, or “active pension”. It is not a pension of its own but a tax exemption, and it applies whether or not you already draw your pension.
This guide explains who qualifies, how the monthly limit works, which social contributions still apply and whether deferring your pension pays off. As of 25 October 2026. The legal basis is the Aktivrentengesetz, BGBl. 2025 I No. 361, which added § 3 No. 21 EStG to the Income Tax Act.
1. The rule
Employment income is tax-free up to €24,000 a year if three conditions are met: you have reached the standard retirement age, you work as an employee, and your employer must pay statutory pension contributions for you. The exemption starts in the month after you reach the standard retirement age. For each month in which the conditions are not met, the annual amount falls by one twelfth.
According to the Federal Ministry of Finance’s monthly report, the tax-free pay is not subject to the Progressionsvorbehalt, the rule that lets tax-free income raise the rate on your other income. Your employer applies the exemption directly in payroll; you do not need to file a tax return just because of the Aktivrente.
2. Who qualifies, and who does not
It covers pay from regular employment subject to social insurance. What you did before does not matter: former self-employed people and retired civil servants qualify too if they now work as employees. Your health insurance status does not matter either. According to the Ministry of Finance FAQ (in German), the following are excluded:
- self-employed and business income,
- civil servants’ salaries and members of parliament’s pay,
- minijobs, however the wage tax is collected,
- severance pay, as a rule,
- any work before the standard retirement age, including after an early pension at 63.
The standard retirement age depends on your year of birth under § 235 SGB VI. For the cohorts retiring now:
| Born in | Standard retirement age |
|---|---|
| 1959 | 66 years and 2 months |
| 1960 | 66 years and 4 months |
| 1961 | 66 years and 6 months |
| 1962 | 66 years and 8 months |
| 1963 | 66 years and 10 months |
| 1964 or later | 67 years |
The German retirement age calculator gives your exact date.
3. €2,000 a month, with no carry-over
In practice the Aktivrente is a limit of €2,000 per month. Whatever you do not use in a month is lost; it cannot be carried forward or back. This also applies to Christmas bonuses and other one-off payments: they are tax-free only to the extent that, together with the monthly pay, they stay within €2,000 and relate to months in which the conditions were met.
In the year you reach the standard retirement age, only the rest of the year counts. The Ministry of Finance gives an example: if you reach it in April and work from May, you can use the Aktivrente for eight months, so at most €16,000. With several jobs, payroll can apply the exemption at only one employer; you can claim any unused amount for the second job in your tax return.
4. Worked examples
Assume your taxable income from your pension and other sources is €15,000 a year. The figures use the 2026 income tax schedule, with no church tax and leaving out pension and health contributions from the salary. According to the Ministry of Finance, the €1,230 employee allowance (Arbeitnehmer-Pauschbetrag) is deducted in full from the taxable part of the pay.
| Salary | Taxable pay | Tax without Aktivrente | Tax with Aktivrente | Saving |
|---|---|---|---|---|
| €2,500 a month | €6,000 instead of €30,000 | €8,427 | €1,514 | €6,913 (€576 a month) |
| €1,500 a month | €0 instead of €18,000 | €4,721 | €435 | €4,286 (€357 a month) |
At €1,500 a month, €500 of the exemption goes unused every month. It is lost, even if a December bonus pushes that month above €2,000.
5. Social contributions still apply
The Aktivrente only exempts pay from income tax. Health and long-term care contributions are due on the salary as before. For pension and unemployment insurance, it depends on whether you already draw your pension:
- Drawing a full old-age pension: you yourself are exempt from pension contributions under § 5 (4) SGB VI, but your employer still pays its share. You can waive the exemption in writing to your employer; then you pay your share too, and the contributions increase your pension later.
- Not drawing a pension: you remain compulsorily insured, both sides pay, and you keep earning pension points every year.
- Unemployment insurance: after the standard retirement age you no longer pay; the employer keeps paying its half under § 346 (3) SGB III.
6. Draw your pension or defer it?
The Aktivrente applies either way. Since 2023 there is also no earnings limit for old-age pensions, so you can draw your pension and earn without limit. Our glossary explains how the Flexirente combines work and pension.
If you defer your pension past the standard retirement age, it rises by 0.5 percent for each month under § 77 SGB VI. An example with a €1,600 gross pension: twelve months of deferral add 6 percent, or €96 a month for life. In exchange you give up €19,200 of pension in that year. Purely arithmetically, before tax, contributions and adjustments, you recover that after just under 17 years.
On top come pension points from your pay. With a €30,000 annual salary and the provisional 2026 average earnings of €51,944, that is about 0.58 points, worth around €24.56 of monthly pension at today’s value. You also earn these points while drawing your pension if you waive the exemption.
Whether deferring pays depends on your health, your needs and your taxes. If you do not need the money and expect a long retirement, deferring tends to help. If you draw the pension straight away, you can invest it or cover spending that would otherwise come from savings. If you may move abroad, check how your new country taxes German pensions and wages before deciding.
7. Part-time and midijobs
The Aktivrente also works for part-time jobs. A midijob paying between €603.01 and €2,000 a month (2026 values) qualifies and is then fully tax-free. A minijob does not qualify. Part-time work only uses part of the exemption, because unused amounts are lost. The part-time calculator shows how fewer hours affect your net pay and plan. The guide Can I afford to work part-time? covers the long-term effects.
8. Plan working longer
Whether working past the standard retirement age makes sense for you depends on the whole household: pension, spending, savings and health. For the yearly change to the pension itself, read our guide on the German pension increase in 2027.
In Zenarios you can enter the end of work and the start of your pension separately, plan part-time work after the standard retirement age and compare the effect of a later pension start. The app needs no account. Its tax and pension rules are simplified; they do not replace tax advice or a statement from Deutsche Rentenversicherung.
Work it out with your numbers
Common questions
Who can use the Aktivrente?
Employees who have reached the standard retirement age and whose employer must pay statutory pension contributions for them. Self-employed income, civil servants' salaries, minijobs and work before the standard retirement age are excluded.
Do I have to draw my pension to use the Aktivrente?
No. The tax exemption applies whether you draw your pension or defer it. Deferring raises the pension by 0.5% for each month after the standard retirement age.
Are social contributions due on the Aktivrente?
Yes. The Aktivrente only exempts pay from income tax. Health and care contributions remain, and pension and unemployment contributions depend on whether you already draw a full old-age pension.
Can unused amounts be carried over?
No. The exemption works per month, up to €2,000. Amounts you do not use in one month, for example in part-time work, cannot be moved to another month, and bonuses count only within that monthly limit.
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Try Zenarios in your browserWritten by the maker of Zenarios, a software engineer. These guides explain planning concepts and the product; they are not a personalized financial recommendation. Illustrative calculations are not results from your plan.