Active Pension 2026
Since 1 January 2026, retirees at the German statutory retirement age can earn up to €2,000 a month tax-free. The Aktivrentengesetz applies to regular employment, not self-employment, civil service, parliamentary work, or Minijobs.
By Checkalle · Last updated: · Deutsche Version · Türkçe
Key Takeaways
- €2,000 a month tax-free on top of your statutory old-age pension, capped at €24,000 per year.
- Only employees who have reached the Regelaltersgrenze (statutory retirement age, 67 with transitional cohorts) qualify. Early retirees and disability pensioners do not.
- Self-employed, civil servants (Beamte), parliamentarians, and Minijob workers are explicitly excluded under § 3 Nr 21 EStG.
- Health and long-term care insurance contributions still apply. The Aktivrente is a tax exemption, not a social security one.
- No application is needed. Your employer applies the allowance through payroll.
€2,000
a month, tax-free
€24,000
a year, tax-free allowance
No
earnings cap on the pension itself
Compare private pension top-ups
How the Active Pension works
The legal anchor is § 3 Nr 21 of the German Income Tax Act (EStG). Once you reach the statutory retirement age and work as a regular employee, the first €2,000 of monthly wages stay outside your taxable income. The rest is taxed normally. Pension contributions and health insurance contributions are not affected.
1. Reach the Regelaltersgrenze
You need to be at the statutory retirement age (currently 67, with transitional cohorts up to 1963). Drawing the pension itself is not required, postponing it is fine too.
2. Take a regular job
Part-time or full-time, the only condition is that the role is subject to social insurance contributions (sozialversicherungspflichtig). Pure Minijobs do not qualify.
3. Use the tax-free allowance
The first €2,000 each month are exempt from income tax. Above that, your normal personal tax rate kicks in. The allowance is annual, so unused months can offset higher months within the same calendar year.
4. Top up your pension (optional)
If you keep paying voluntary RV contributions while working, your statutory pension grows further. Your DRV Renteninformation will show the exact figure for your situation.
How Aktivrente became law
15 October 2025 — Cabinet decision
The Federal Cabinet approved the bill for the Aktivrente (Bundesregierung press release).
5 December 2025 — Bundestag vote
The Bundestag passed the Aktivrentengesetz in second and third reading.
19 December 2025 — Bundesrat approval
The Bundesrat approved the law without calling the Mediation Committee.
1 January 2026 — In force
Wage payments from this date onward fall under the new tax-free allowance (BMF FAQ, DRV FAQ).
Who is excluded
The Aktivrentengesetz is narrow on purpose. § 3 Nr 21 EStG limits the tax exemption to non-self-employed wage income. The Federal Government has confirmed the following groups are not covered:
- Self-employed (freelancers, business owners)
- Civil servants (Beamte)
- Parliamentarians (Abgeordnete)
- Minijob workers (450/520-Euro jobs, lump-sum SV)
- Agriculture and forestry self-employment
- Early retirees and disability pensioners (separate Hinzuverdienst rules apply)
If you fall into one of these groups and someone tells you the €2,000 allowance is for you, double-check with the Deutsche Rentenversicherung before signing anything. Different rules can sound similar but produce very different tax bills.
Aktivrente for expats and foreign retirees
Citizenship is not the test. What matters is whether you are entitled to the German statutory old-age pension (Regelaltersrente) and whether your job in Germany is subject to social insurance. EU and non-EU retirees who built up enough contribution years in the German pension system qualify on the same terms as German nationals.
Two practical points if you are an expat:
- If you live in Germany. Your wage is taxed in Germany, the Aktivrente allowance applies through your employer, no extra paperwork.
- If you live abroad. Cross-border income may be covered by a double-tax treaty. Run your specific case past the DRV abroad office and a tax advisor before relying on the €2,000 allowance.
For broader expat coverage of pension topics, see our pension guide for foreigners in Germany, or the English-language report by IamExpat.
Example: a retiree with a side job
Starting point
- Net pension€1,400/month
- Side-job gross wage€1,800/month
- Tax-free under Aktivrente€1,800
Result
Net side-job figure is after KV/PV contributions. Your real number depends on your statutory health fund rate and personal factors.
What you pay, what you keep
| Item | Up to €2,000/month wage | Above €2,000 |
|---|---|---|
| Income tax (Lohnsteuer) | 0% | Personal tax rate on the surplus |
| Health insurance (KV) | Standard contribution applies | Standard contribution applies |
| Long-term care (PV) | Standard contribution applies | Standard contribution applies |
| Pension contribution (RV) | Optional, raises your future pension | Optional, raises your future pension |
| Solidarity surcharge / church tax | Not applied on the tax-free part | Applied on the surplus |
Specific KV/PV rates change every year. For 2026 figures, check our pensioner health contribution overview and the 2026 contribution ceiling.
Aktivrente vs Hinzuverdienst vs Flexi-Rente
Three rules sound alike and people mix them up. They are different.
| Active Pension (Aktivrente) | Early-retirement Hinzuverdienst | Flexi-Rente | |
|---|---|---|---|
| Who | Retirees at the statutory age | Early or disability pensioners | Anyone moving in or out of retirement gradually |
| What it does | €2,000/month income tax exemption | Caps how much you can earn while drawing the pension | Combines partial pension with continued work + RV contributions |
| Legal basis | § 3 Nr 21 EStG (since 2026) | SGB VI (older rules) | Flexirentengesetz 2017 |
| Application needed | No | Reported via DRV | Yes, with DRV |
Mixing these up is the most common Aktivrente mistake we see. If a calculator promises you €2,000 tax-free as an early retiree, treat it with suspicion.
Frequently asked questions
When did the Active Pension take effect in Germany?
The Aktivrente has been in force since 1 January 2026. The Bundestag passed the Aktivrentengesetz on 5 December 2025, and the Bundesrat approved it on 19 December 2025.
Who can use the Active Pension?
Employees who have reached the statutory retirement age (Regelaltersgrenze, currently 67 with transitional cohorts) and work in a job subject to social insurance contributions. Self-employed people, civil servants, parliamentarians, and Minijob workers are excluded under § 3 Nr 21 EStG.
How much can I earn tax-free as a retiree in Germany in 2026?
Up to €2,000 per month, or €24,000 per year, are exempt from income tax under the Active Pension. Anything above that is taxed at your personal income tax rate.
Do I have to apply for the Active Pension?
No. Your employer applies the tax-free allowance automatically through payroll. There is no separate form to fill in.
Do social security contributions still apply?
Yes. The Active Pension is an income tax exemption, not a social security exemption. Health insurance (KV) and long-term care insurance (PV) contributions are still due on the wage.
Will my pension increase if I keep working past retirement?
It can, if you choose to continue paying voluntary pension insurance (RV) contributions while working. The exact increase depends on your contribution level and the current pension value (Aktueller Rentenwert) at the time you stop. For your personal figure, check your DRV pension forecast (Renteninformation).
Can foreigners and expats benefit from the Aktivrente?
Yes, if you are entitled to the German statutory old-age pension (Regelaltersrente) and work as a regular employee in Germany. Citizenship is not the criterion. Eligibility runs through the German pension system, so EU and non-EU residents qualify on the same terms as German nationals.
What happens to early retirees and disability pensioners?
They are not covered by the Active Pension. Different rules apply for them under the Deutsche Rentenversicherung (Hinzuverdienstgrenzen for early or reduced-earning-capacity pensions), and these have nothing to do with the new Aktivrentengesetz.
Other 2026 changes that may affect you
The Aktivrente sits inside a wider set of 2026 reforms that touch retirees and workers in Germany. A few that often come up alongside it:
- • Pensioner health contribution 2026, the Zusatzbeitrag rules that determine what your KV deduction looks like.
- • 2026 contribution ceiling (Beitragsbemessungsgrenze), the wage threshold above which social insurance percentages stop applying.
- • 2026 reforms overview, the broader summary of legal changes affecting income, tax, and benefits.
- • Riester reform 2027, the next major change to the private pension landscape.
- • Frühstart-Rente 2026, the planned 10 euros per month from the state for every child aged 6 to 18.