Germany remains the most popular destination for jobs and earnings among most compatriots. The distance to the border, the quality of life, high earnings and the need for employees – all these have so far convinced millions of foreigners. There are many people who want to go to Germany. Due to the fact that some foreigners decide to migrate completely, it is worth looking at how the retirement pension system works in Germany. How much is the retirement pension in Germany? Since when is it due? The answers can be found in the article.
Going to work in Germany – popular industries
The labor market in Germany is heavily dependent on foreign workers. Vacancies can be found in literally every industry. What’s more, you can count on employment both in the seasonal period as well as after its completion.
It is recommended to look for employment in smaller towns, due to lower costs of living and greater demand for employees. Unfortunately, internal migration to larger cities is nowadays a completely natural phenomenon.
We recommend that you pay attention to job offers, for positions such as:
- Caretaker of an elderly person
- Medical worker (nurse)
- Restaurant / hotel staff
- Work in the warehouse
- Mechanic / engineer
- Construction worker
- Plumber
- Electrician
Working hours in Germany
The weekly working time in Germany is around 39 hours, although also common is 40-hour working in a week. Offices are usually opened at 9.00 a.m., with lunch breaks (Mahlzeit) around 12.30 p.m.
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Earnings in Germany
Salary for work in Germany varies depending on the industry and region, and is subjected to the so-called tariff arrangements, that define them precisely. Wages in the eastern federal states are generally lower than those in the western federal states, due to historical differences in economic development.
In Germany, there is also a newly established nationwide minimum rate amount, which in 2023 is EUR 12 gross.
Below you can check the average gross hourly rates in individual industries:
| Industry / position | Average gross hourly rate |
| Warehouse work | EUR 12-13 |
| Production | EUR 12-15 |
| General construction worker | EUR 15-16 |
| Locksmith-welder | EUR 17-18 |
| Caretaker of an elderly person | EUR 16-25 |
| Waiter / Waitress | EUR 14-15 |
| Gardening / harvesting | EUR 12-14 |
| Shop assistant | EUR 12-14 |
| Construction electrician | EUR 18-19 |
Check the minimum wages in Germany in 2023
As mentioned above, hourly rates can vary greatly depending on the federal state, an experience or the company that employs. What’s more, knowledge of the German language also affects the amount of the offered rate. However, there still appear a lot of job offers where language is not required, but at the same time you should not expect a higher rate or a better position.
Retirement in Germany for foreign employees – what to pay attention to?
Each employee after working min. 5 years, acquires the right to the retirement pension in Germany. The condition is regular payment of pension contributions.
But! We are talking about acquiring the right to the possibility of receiving the retirement pension, not a minimum pension. The amount of benefits depends on the employee’s income, i.e. we will not get the lowest German pension after 5 years of work.
Moreover, the minimum retirement pension does not apply in Germany. Settlements are made individually for each person. Using the pension calculator in Germany, we can check how much we are likely to get.
What else is worth paying attention to?
In Germany, there apply 2 agreements on retirement pension payments for foreigners: the 1975 pension agreement and the EU pension law.
The first agreement applies to the people who left for Germany before 31.12.1990. In this case, years of professional experience from the country of origin of the employee and Germany, are summed up. At the same time, the obligation to pay the benefit lies on the side of the state, in which the person currently resides.
On the other hand, the pension law of the European Union assumes that the amount of the retirement pension consists of all the years worked within the EU. So, regardless of the place of work or even temporary residence, the pension will be paid at the place of permanent residence.
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Conditions for receiving the retirement pension in Germany
As mentioned above, the right to the retirement pension is acquired after 5 years of work in Germany. The length of internship includes only legal employment, for which contributions are paid, among others, to the pension fund. In addition, we must remember about the achievement of the retirement age.
What is the retirement age in Germany?
As it turns out, there is no clear answer to this question. This is due to the fact that the retirement age in Germany is classified by the year of birth. So, for example:
| Year of birth | Retirement age |
| before 1947 | 65 years old |
| 1947-1958 | 65 years and 1 month |
| 1958 | 66 years old |
| 1959-1963 | 66 years and 2 months |
| after 1964 | 67 years old |
The German government announces that from the year 2031, the retirement age will be standardized and will be 67 years for both women and men. As you can see in the table, some fields are marked with years + months. This is due to the fact that the retirement age is currently being increased by one month each year.
There is also the possibility of early retirement. The condition is either a certificate of disability or 45 years of work experience.
Types of retirement pensions in Germany
There are several types of retirement pensions in Germany:
- Regelaltersrente – basic
- Frühere Pensionierung – early retirement (45 years of internship)
- Erwerbsminderungsrente – for disability
- Ruhestand für Bergleute – for miners (from 60 years of age)
- Hinterbliebenenrente – for a widow or a widower
- Grundsicherung – allowance for the people of low incomes
The benefit for the people of low income, came into effect from 2021. The condition is the payment of insurance premiums for min. 33 years and a monthly income of EUR 1250. The amount of the supplement ranges from 70 to even 450 EUR/month. The benefit is granted automatically, there is no need to complete additional applications.
Working in Germany without knowing the language – list of industries
What determines the amount of the retirement pension in Germany?
First of all, the amount of the retirement pension in Germany consists of the employee’s income. From the years worked, the most favorable one in financial terms is selected and based on this, the pension is calculated.
In addition, the amount of the retirement pension depends on:
- the length of work internship
- the amount of insurance premiums
- the retirement ratio (the earlier, the lower is the amount)
- the retirement pension points
As for the last one, a person receives 1 retirement pension point in case of reaching the average annual income in Germany (in 2022 it was approx. EUR 40 200). The more points you earn, the greater the amount of your retirement pension will be.
You can also find information that the amount of the retirement pension in Germany, is approx. 30-35% of the income that a person has achieved in the above-mentioned most favorable period.
Interestingly! The historical background also affects the amount of pension benefits. For example, most women living in the west of Germany, retired from work for maternity. And therefore, they now lack years of work internship or adequate pension points.
What is the average retirement pension in Germany?
As we already know, there is no minimum retirement pension in Germany, because it is difficult to specify how much it is. The average retirement pension in Germany is approx. EUR 1538 gross. From July 2023, the average retirement pension in the western federal states will increase by 3.5%, while in the east by 4.2%.
Important! This is the average pension after 45 years of work internship.
In other cases, a person can count on the retirement pension of the amount of approx. EUR 1000.
Prices and costs of living in Germany
How to apply for the retirement pension in Germany?
First of all, we must remember that the application for the retirement pension in Germany must be submitted at least 3 months before achieving the retirement age. The application should be accompanied by:
- a birth certificate
- employment data (e.g. employment certificates)
- certificate of disability (if any)
- copy of passport (ID card)
- bank account number
- health insurance card
Applications to download can be found on the website of the German health insurance company – Deutsche Rentenversicherung.
Are you just planning a trip to Germany?
