Pension reform: The active pension is coming – these are the first details

The federal government is introducing three reforms to get Germans to work more. One concerns the so-called active pension, which is a tax bonus for pensioners who continue to work . In addition, overtime pay is to be made tax-free. And anyone who switches from part-time to full-time and receives a bonus from their boss will also receive a tax advantage. This is according to a draft bill from the Federal Ministry of Finance. The law has not yet been submitted to interministerial coordination, i.e., to formal negotiations between the federal ministries. Some points could still be changed before it goes to the cabinet and then to the Bundestag and Bundesrat. The law is scheduled to come into force as early as the beginning of 2026, and the timetable for the negotiations is accordingly tight.