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2025 Brings Increased Earnings Potential for Retirees and Disability Pensioners in Germany

Important change for pensioners

Important change for pensioners. Work in Germany. New calculation methods and higher contribution limits: 2025 will bring significant changes for pensioners and high earners. Starting January 1, 2025, the income limits will be raised for 1.8 million retirees receiving total or partial disability pensions, according to a draft law from the Ministry of Labor and Social Affairs. Additionally, contribution limits will be established for 2025. Because of wage increases in recent years, high earners will pay more next year. This is an important change for millions of pensioners.

Disability Pension: Increased Earnings Limits Starting in 2025

Starting in 2023, the additional earnings limit for disability pensions has been calculated using a new method. While it may seem complicated at first, it’s actually straightforward. According to the German pension insurance, this limit is set annually. Here’s how it works:

For 2025, the monthly reference amount is €3,745, up from €3,535 in 2024. Based on this, the new additional income limits for disability pensioners will take effect on January 1, 2025:

  • Total disability: €14 x €3,745 = €52,430
    Additional earnings limit: €19,661.25 per year (three-eighths of the total)
  • Partial disability: €39,322.50 per year (six-eighths of the total)

More Income for Retirees Working Part-Time

Pensioners receiving a disability pension can earn money up to the additional income limit without it affecting their pension. This means you can supplement your pension with a part-time job as long as you stay within the annual limits mentioned earlier. Starting in 2025, those with full disability can earn a maximum of €1,638 per month from work. For those with partial disability, a gross monthly salary of €3,276.81 is also achievable.