Sin\u00adce 1 Janu\u00adary 2026, the\u00adre has been a new tax exemp\u00adti\u00adon for pen\u00adsio\u00adners who remain in employ\u00adment sub\u00adject to social secu\u00adri\u00adty con\u00adtri\u00adbu\u00adti\u00adons bey\u00adond the stan\u00addard reti\u00adre\u00adment age. The so-cal\u00adled \u2018acti\u00adve pen\u00adsi\u00adon\u2019 allows them to recei\u00adve up to 2,000 euros in wages each month tax-free. The Fede\u00adral Minis\u00adtry of Finan\u00adce has published a list of fre\u00adquent\u00adly asked ques\u00adti\u00adons (FAQs) on this sub\u00adject, which was last updated in June 2026.<\/p>\n\n\n\n
The pro\u00advi\u00adsi\u00adon in Sec\u00adtion 3(21) of the Inco\u00adme Tax Act (EStG) exempts inco\u00adme from employ\u00adment of up to 2,000 euros per month from tax if the employee has alre\u00ada\u00addy pas\u00adsed the sta\u00adtu\u00adto\u00adry stan\u00addard reti\u00adre\u00adment age and the employ\u00ader pays pen\u00adsi\u00adon insu\u00adrance con\u00adtri\u00adbu\u00adti\u00adons on their behalf. This amounts to a maxi\u00admum of 24,000 euros tax-free per year, and the allo\u00adwan\u00adce appli\u00ades in addi\u00adti\u00adon to the basic tax-free allo\u00adwan\u00adce. Unli\u00adke, for exam\u00adp\u00adle, with short-time working allo\u00adwan\u00adce, the\u00adre is no pro\u00adgres\u00adsi\u00adon clau\u00adse that would increase the tax rate on the remai\u00adning income.<\/p>\n\n\n\n
This sche\u00adme is available to all employees sub\u00adject to social secu\u00adri\u00adty con\u00adtri\u00adbu\u00adti\u00adons who have rea\u00adched the sta\u00adtu\u00adto\u00adry stan\u00addard reti\u00adre\u00adment age. For tho\u00adse born in 1964 or later, this is 67 years of age. Anyo\u00adne who has reti\u00adred ear\u00adlier \u2013 for exam\u00adp\u00adle, under the \u2018reti\u00adre\u00adment at 63\u2019 sche\u00adme \u2013 can still cla\u00adim the acti\u00adve pen\u00adsi\u00adon, but only from the month after they reach the stan\u00addard reti\u00adre\u00adment age. So-cal\u00adled \u2018midi-jobs\u2019 in the tran\u00adsi\u00adtio\u00adnal cate\u00adgo\u00adry are also included.<\/p>\n\n\n\n
Howe\u00adver, the self-employ\u00aded, civil ser\u00advants and tho\u00adse in mar\u00adgi\u00adnal employ\u00adment are not eli\u00adgi\u00adble, as no pen\u00adsi\u00adon insu\u00adrance con\u00adtri\u00adbu\u00adti\u00adons are paid by the employ\u00ader on behalf of the\u00adse groups. Whe\u00adther mana\u00adging part\u00adners of a GmbH can make use of the acti\u00adve pen\u00adsi\u00adon depends on whe\u00adther they are sub\u00adject to com\u00adpul\u00adso\u00adry pen\u00adsi\u00adon insu\u00adrance in the spe\u00adci\u00adfic indi\u00advi\u00addu\u00adal case.<\/p>\n\n\n\n
The employ\u00ader takes the tax-free allo\u00adwan\u00adce into account when making the month\u00adly pay\u00adroll tax deduc\u00adtion. The tax-free allo\u00adwan\u00adce appli\u00ades strict\u00adly on a month\u00adly basis. Any unu\u00adsed por\u00adti\u00adon of the allo\u00adwan\u00adce can\u00adnot be car\u00adri\u00aded over to other months. Christ\u00admas bonu\u00adses or other spe\u00adcial pay\u00adments are only tax-free pro\u00advi\u00added that, tog\u00ade\u00adther with the regu\u00adlar sala\u00adry, they do not exceed the \u20ac2,000 limit in the respec\u00adti\u00adve month.<\/p>\n\n\n\n
An exam\u00adp\u00adle from the BMF\u2019s FAQs: Someone recei\u00adves 1,500 euros a month from May onwards and is paid an addi\u00adtio\u00adnal 800 euros in Christ\u00admas bonus in Decem\u00adber. In Decem\u00adber, the\u00adr\u00ade\u00adfo\u00adre, only \u20ac500 of the Christ\u00admas bonus is tax-free, as the \u20ac2,000 tax-free allo\u00adwan\u00adce has alre\u00ada\u00addy been used up by the regu\u00adlar sala\u00adry of \u20ac1,500. The remai\u00adning \u20ac300 of the Christ\u00admas bonus is sub\u00adject to stan\u00addard taxation.<\/p>\n\n\n\n
If you hold seve\u00adral jobs at the same time, the acti\u00adve pen\u00adsi\u00adon can only be taken into account for one of the\u00adse jobs under the pay\u00adroll tax deduc\u00adtion sche\u00adme. Any unu\u00adsed balan\u00adce from the second job can be clai\u00admed retro\u00ads\u00adpec\u00adtively via your inco\u00adme tax return.<\/p>\n\n\n\n
Tax-free inco\u00adme from the acti\u00adve pen\u00adsi\u00adon must be shown in the pays\u00adlip and on the inco\u00adme tax state\u00adment. In the elec\u00adtro\u00adnic state\u00adment for 2026, the desi\u00adgna\u00adti\u00adon for this is Tax allo\u00adwan\u00adce for occu\u00adpa\u00adtio\u00adnal pen\u00adsi\u00adon<\/strong> pro\u00advi\u00added for in a line that can be used as requi\u00adred. An annu\u00adal inco\u00adme tax adjus\u00adt\u00adment by the employ\u00ader is not per\u00admit\u00adted in the case of an acti\u00adve pension.<\/p>\n\n\n\n Anyo\u00adne who con\u00adti\u00adnues to work after rea\u00adching reti\u00adre\u00adment age, or who returns to work after a break, can bene\u00adfit from signi\u00adfi\u00adcant tax advan\u00adta\u00adges through the \u2018acti\u00adve pen\u00adsi\u00adon\u2019 sche\u00adme. Employ\u00aders are obli\u00adged to app\u00adly the tax exemp\u00adti\u00adon cor\u00adrect\u00adly and, whe\u00adre neces\u00adsa\u00adry, to make retroac\u00adti\u00adve adjus\u00adt\u00adments if this has not been done sin\u00adce the start of the year. In cases of com\u00adplex employ\u00adment arran\u00adge\u00adments, such as hol\u00adding mul\u00adti\u00adple jobs or acting as a share\u00adhol\u00adder-mana\u00adging direc\u00adtor, it is advi\u00adsa\u00adble to seek per\u00adso\u00adna\u00adli\u00adsed tax advice.<\/p>\n\n\n\nWhat does this mean for clients?<\/h2>\n\n\n\n