Germany: Legal ruling on transition allowances and rising mental health rehabilitation

In Germany, the Social Court of Karlsruhe has ruled that if the statutory pension insurance denies transition allowance (Übergangsgeld) for the period between the end of a rehabilitation measure and the start of gradual vocational reintegration, the statutory health insurance may still be liable to pay sickness benefits (Krankengeld) as an advance. This is based on the principle of most favorable treatment.

Separately, data from the Deutsche Rentenversicherung indicates a significant rise in rehabilitation services for mental and psychosomatic illnesses. The number of such medical rehabilitations increased from approximately 139,000 in 2005 to 193,000 in 2025, a 39 percent increase. Mental health conditions now represent the second-largest indication group, following orthopedic diseases.

Statistics show that approximately 8 million people in Germany suffer from mental illnesses. Rehabilitation measures remain a vital tool for maintaining employability, with roughly 78 percent of those treated for mental health issues remaining in the labor market two years after completing their rehabilitation.