• Government finally reaches pension agreement!

20 years' work for minimum pension, pension bonus for those who work longer and more gender equality

19 July 2022

After weeks of negotiations and just in time for the summer break: last night, the federal government reached an agreement on the pension reform. Essential elements of the deal are the conditions for the minimum pension to apply and the reintroduction of a pension bonus for those who want to work longer.

The government decided that you must have worked for 20 years to be entitled to the minimum pension. This is based on 250 working days per year. This arrangement applies to everyone who is 53 years of age or younger when the reform takes effect (from 1 January 2024). For those aged between 54 and 60, there will be a transition period in which the requirements for the actual number of years worked are lower. For someone aged 54, for example, it will be 17 years of work, for a 55-year-old it will be 14 years, and so on. Those who are at that time 61 will automatically have access to the minimum pension without this condition.

Also the pension bonus for those who work longer will be reintroduced. The exact amount will be determined later, but it would amount to EUR 300 to 500 extra net pension for each additional year worked.

Finally, there will also be more pension for those who have worked part-time in the past, for example to take care of their children. This measure should especially boost the pensions of women. The regulation applies to those who worked part-time before 2001, and thus before the time credit system was introduced. In those cases, the condition of the number of years worked is slightly relaxed. In five years, one only needs to have worked 208 days instead of 250.

Stay tuned for further updates!