The Second Act to Strengthen Occupational Pensions (Zweites Betriebsrentenstärkungsgesetz) is intended to further expand occupational pension provision and make it accessible to more employees.
Higher subsidy
As an incentive for building up additional employer-financed occupational pension provision, the occupational pension subsidy (BAV-Förderbetrag) is to be increased from 2025 from a maximum of EUR 288 to a maximum of EUR 360. This means that additional employer contributions of up to EUR 1,200 (instead of the previous EUR 960) will be eligible for support.
Higher income thresholds
Employees with a gross monthly income previously below EUR 2,575 benefit from additional state support if their employer grants them a company pension.
This income threshold is to be raised from 2025 to EUR 2,718 per month (regardless of full-time or part-time employment) and indexed by linking it to the contribution assessment ceiling. As a result, employees will generally no longer lose eligibility for the subsidy due to an increase in income.
More flexible access to the pension
Employees are to be given the option of drawing their company pension in future even if they are already receiving a partial pension from the statutory pension insurance scheme.
Frequently asked questions
Frequently asked questions
What is the amount of the BAV (occupational pension) subsidy from 2025?
From 2025, the BAV subsidy will be raised from a previous maximum of EUR 288 to a maximum of EUR 360 per year. This allows employers to make state-subsidised additional contributions to occupational pension schemes of up to EUR 1,200 per year (previously EUR 960). The subsidy is reimbursed to the employer by offsetting it against wage tax.
What income threshold applies from 2025 for the low-earner subsidy in occupational pension schemes (bAV)?
From 2025, the monthly gross income threshold for the additional state subsidy on employer-funded occupational pensions will be raised from EUR 2,575 to EUR 2,718. The threshold applies regardless of whether the employee works full-time or part-time. It will also be linked to the contribution assessment ceiling and thus indexed dynamically.
What does the dynamic adjustment of the income threshold for the bAV (occupational pension) subsidy mean?
By linking it to the contribution assessment ceiling, the income threshold for the low-income earner subsidy will automatically rise in the future. As a result, employees no longer lose eligibility simply due to regular wage increases. This creates greater planning certainty for both employers and employees with regard to occupational pension schemes (bAV).
Will employees be able to draw their company pension in parallel with a partial pension in the future?
Yes, the Second Company Pension Strengthening Act (Zweites Betriebsrentenstärkungsgesetz) makes access to retirement benefits more flexible. Going forward, employees can draw their company pension as soon as they receive a partial pension from the statutory pension insurance. This facilitates a gradual transition into retirement.
Which target group is the Second Occupational Pension Strengthening Act primarily intended to reach?
The act is aimed in particular at low-income earners and employees of small and medium-sized enterprises. Higher subsidy amounts and increased income thresholds are designed to expand occupational pension coverage within these groups. More flexible payout rules are also intended to enhance the appeal of occupational pension schemes (bAV).