Germany is popular with blue-collar workers in Europe because of its strong job market, good pay, and high quality of life. If you’re thinking about working there long-term, it’s important to know how the retirement pension system works. Here’s a simpler look for 2024.
Top Industries for Jobs
Germany needs many foreign workers, especially for blue-collar jobs. The main industries are:
- Healthcare (nurses, elderly care)
- Hospitality (restaurant and hotel staff)
- Construction (general workers, electricians, plumbers)
- Manufacturing and Logistics (warehouse workers, mechanics, engineers)
Smaller towns might have more job opportunities and lower living costs, but big cities are still popular.
Working Hours and Pay
The standard workweek in Germany is 39-40 hours. The minimum wage is now EUR 12.50 per hour as of 2024. Average hourly pay in some sectors:
- Warehouse work: EUR 12-14
- Healthcare: EUR 17-26
- Construction: EUR 18-20
Retirement Pension Basics
Foreign workers get pension rights after 5 years of work if they pay into the pension system. The pension amount depends on how much you contribute over the years, not just the minimum time worked.
Retirement Age
The retirement age in Germany depends on your birth year:
- Before 1947: 65 years
- 1947-1958: 65 years and increasing gradually
- 1958-1963: 66 years and 2 months
- After 1964: 67 years
By 2031, everyone will retire at 67 years.
Types of Pensions
Germany has different types of pensions:
- Basic Pension
- Early Retirement for those with 45 years of service
- Disability Pension
- Miners’ Pension from age 60
- Widow/Widower Pension
- Supplement for Low Incomes (EUR 70 to EUR 450 per month)
Calculating Pension Amounts
Pension amounts depend on:
- Length of employment
- Amount of pension contributions
- Retirement age
- Pension points earned (1 point for average annual income, about EUR 40,200 in 2022)
As of 2024, the average gross retirement pension is EUR 1600 for those with 45 years of contributions.
Applying for a Pension
Apply for retirement pensions at least 3 months before retiring. You need:
- Birth certificate
- Employment records
- Disability certificate (if applicable)
- ID (passport or ID card)
- Bank account details
- Health insurance card
Applications are available on the Deutsche Rentenversicherung website (Deutsche Rentenversicherung)