The Federal Government plans to maintain the general pension level at 48 per cent until 2031 and to standardise the mother’s pension. DIHK welcomes the flexibility for employees of retirement age but warns of additional burdens on companies. Without structural reforms of the pension system, increasing tax and contribution rates are threatening to impair competitiveness. It is essential to prioritise long-term financial sustainability and securing skilled labour.
Key Points at a Glance
- Stabilisation of pension levels until 2031 at 48 percent.
- Standardisation of child-rearing periods to three years per child.
- Removal of pre-employment prohibition for older employees.
- Funding pension burdens through taxes to avoid increases in contribution rates.
- Critical assessment: Demographic challenges remain unresolved and costs for companies increase.
Background
The bill envisages stabilising the pension level until 2031 and aligning child-rearing periods for mothers of all birth cohorts to three years. Additionally, the prohibition of pre-employment for older workers should be lifted to enable a more flexible transition into retirement. DIHK critically notes that the planned measures do not address the structural challenges of the pension system. Demographic change will aggravate the ratio of contributors to pensioners and lead to higher burdens for companies. Long-term measures are needed to ensure both pension financing and skilled labour availability in companies.
What is important for companies
- The further fixation of the pension level results in higher state subsidies which will lead to growing burdens on businesses in the long term.
- Shortages in skilled labour will continue to be exacerbated by pensions paid without deductions after 45 years of insurance.
- Early planning and adjustment of personnel strategies are needed to avoid bottlenecks.
- Flexible continued employment opportunities, such as the new active pension, can be used to retain older skilled workers in the company.
DIHK’s demands
- Abolition of the pension without deductions after 45 years of insurance to reduce early retirements.
- Increasing deductions for early retirement to curb incentives for early retirements.
- Linking the retirement age to life expectancy.
- Prioritising structural reforms of the pension system instead of one-sided redistribution measures.
- Efficient use of tax funds for securing skilled labour instead of purely consumptive benefits like the mother’s pension.
FAQ
Frequently Asked Questions
What does stabilising the pension level mean?
The pension level will remain at 48 percent until 2031, preventing reductions caused by demographic changes, with financing mainly coming from tax funds.
Who benefits from the third stage of maternity pensions?
Mothers with children born before 1992 will now receive three years of childcare per child, equal to mothers with younger children.
What impact does this have on companies?
Higher tax subsidies strain the state budget, potentially leading to higher taxes or reduced investment capacities for businesses.
What advantages exist for older employees?
By lifting the ban on previous employment restrictions, older workers can flexibly work on fixed-term contracts with their former employers.
What structural reforms is the DIHK calling for?
The reactivation of the sustainability factor, alignment of the retirement age, and reduction of early retirement incentives.
Download
DIHK Statement on the Pension Package 2025 (PDF, 151 KB) (only available in German)
- Relevant in topic:
- Wirtschafts- und Finanzpolitik
- Key areas:
-
- Beschäftigung
Released 30.07.2025
Modified 12.03.2026
Contact
Dr. Anne Zimmermann
Director Employment, Pension Schemes, Family in the Workplace