Germany enacts tax‑free €2,000 monthly bonus for retirees over 67

The German Bundesrat approved the Aktivrentengesetz on 19 December 2025, and it entered into force after publication in the Bundesgesetzblatt on 23 December 2025. The law allows retirees who have reached the regular pension age of 67 (with transitional ages for those born 1958‑1964) to earn up to €2,000 per month from non‑self‑employed work tax‑free.

The benefit applies to income from active employment only; pensions, severance payments, civil‑service salaries, mini‑jobs and income of controlling shareholders are excluded. The tax exemption does not trigger the progression clause that normally raises the marginal tax rate on other income. Eligible persons – those born in October 1959 or earlier – can claim the exemption from January 2026.

Tax adviser Roland Franz of Roland Franz & Partner in Essen explained that the measure is intended to encourage older workers to stay in the labour market while increasing their net earnings in retirement.