What is the Active Pension and since when does it apply?

The Active Pension (Aktivrente) is a tax incentive to keep working past the statutory retirement age. Since 1 January 2026, wages of up to €2,000 per month (€24,000 per year) remain income-tax-free if you work as an employee alongside your pension. The legal basis is the Active Pension Act (§ 3 Nr. 21 EStG).

Who is entitled to the Active Pension?

Only dependent employees who have reached the statutory retirement age are entitled. Self-employed persons, freelancers and business owners are explicitly excluded. The statutory retirement age is 67 for those born in 1964 or later, and slightly lower for older cohorts.

How high is the tax-free amount exactly?

Up to €2,000 gross wage per month stays tax-free, i.e. a maximum of €24,000 per year. If you earn more, only the excess is taxed normally. A wage of €1,800 is therefore fully income-tax-free; at €2,500, €2,000 stays free and €500 is taxed.

Do I still have to pay social contributions?

Yes, but less than before. After the statutory retirement age, your employee contributions to pension and unemployment insurance no longer apply. Contributions to health and care insurance are still due on the wage, however. The tax exemption only concerns income tax, not social insurance.

Is my pension reduced or taxed by continued work?

Your statutory pension remains unchanged and is taxed normally according to your individual taxable share. The Active Pension only concerns the wage, not the pension itself. Through continued work you can even earn additional pension points if you voluntarily keep paying into the pension insurance.

Is the Active Pension worthwhile even with a low wage?

The tax benefit is greatest if you would otherwise have a high marginal tax rate — for example because you receive a good pension plus wage. With a very low total income below the basic allowance, hardly any tax is due anyway, so the benefit is smaller. Our calculator shows the concrete savings for your situation.

Can I combine the Active Pension with a mini-job?

A mini-job (up to €556/month) is already taxed at a flat rate or tax-free. The Active Pension is worthwhile above all if you want to earn more than a mini-job, because it makes significantly higher wages tax-free. Those working only a few hours are often simpler off with a classic mini-job; those earning more benefit more from the Active Pension.

Is this calculator's result binding?

No. The calculator provides a realistic orientation based on simplified assumptions (basic tariff, 83.5% taxable share, no church tax). Your individual tax burden depends on further factors such as joint assessment, other income or special expenses. For a binding calculation, consult a wage tax assistance association or tax advisor.

Active Pension: Who Really Benefits from the Tax Bonus? | Active Pension Calculator

Who really benefits from the Active Pension

At first glance the Active Pension sounds like a win for everyone who keeps working in retirement. But the actual benefit varies greatly depending on your life situation. Three factors are decisive: your employment status, your age and the level of your total income.

Before we go into detail: you can determine your personal saving at any time with the <a href="/en/active-pension-calculator">Active Pension Calculator</a>. It takes your pension, your wage and your tax rate into account and instantly shows what is in it for you.

Employees yes, self-employed no

The most important distinction: the tax exemption only applies to dependent employees. Anyone with an employment contract who pays wage tax benefits. Self-employed persons, freelancers and business owners come away empty-handed – nothing changes for them under the Active Pension.

This is particularly relevant for people considering self-employment in retirement. Anyone who wants to use the tax benefit should check whether employment – for example part-time – is the better choice.

Those who pay a lot of tax save the most

The key to the Active Pension lies in the marginal tax rate. The wage is normally added on top of the pension and taxed at the highest personal rate. It is exactly this rate that disappears for the first 2,000 euros of wage. So anyone who receives a decent pension and is therefore already in the middle or upper tax bracket saves especially much through the exemption.

Conversely: anyone with only a small pension and a low wage may remain below the basic allowance anyway. Then hardly any tax is due, and the benefit of the Active Pension is correspondingly smaller. That is why an individual look pays off.

Part-time as the royal road

For many, a part-time position is the most attractive option. A wage of 1,200 to 2,000 euros stays completely tax-free, the workload is manageable, and the pension continues unreduced. Those who work full-time and earn over 2,000 euros also benefit – but only the portion up to 2,000 euros is tax-free.

Examples in comparison

An engineer with a high pension who continues to work for 2,000 euros can save several hundred euros a year thanks to the dropped top tax rate. A tradesperson with a small pension and 1,000 euros of extra income saves considerably less because their total income is lower. Both benefit – but to very different degrees.

Conclusion

Employees with a solid pension and a medium to higher extra income get the most out of the Active Pension. Whether you are among the big winners is revealed by the <a href="/en/active-pension-calculator">Active Pension Calculator</a> with your own figures in just one minute.

Active Pension: Who Really Benefits from the Tax Bonus?

Who really benefits from the Active Pension

Employees yes, self-employed no

Those who pay a lot of tax save the most

Part-time as the royal road

Examples in comparison

Conclusion

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