Secondary job with reduced earning capacity pension: how much can i earn in addition?

Most people come to our social counseling because they are seriously ill. As a result, many sufferers fall into sick pay, which is paid for a maximum of 78 weeks. When the sickness benefit is exhausted, the question arises at some point: Should I apply for a reduced earning capacity pension??

Secondary job with reduced earning capacity pension: how much can i earn in addition?

Reduced earning capacity pension – the most important information

In order to be eligible for a reduced earning capacity pension in the first place, two essential aspects must be fulfilled. First, a doctor from the pension insurance company must determine that you can work less than three hours a day. What occupation you had before does not matter here. The question of earning capacity reflects the general labor market. To put it bluntly, if you can still make phone calls in a call center, you won’t get a reduced earning capacity pension.

If, in the view of the pension provider, you can work more than three hours, but no more than six hours, you are entitled to half a reduced earning capacity pension. Here it can happen that despite recognition of this partial reduction in earning capacity pension nevertheless the full pension is paid out. However, this is only the case if no part-time jobs exist for the present capacity.

The second important prerequisite: you must meet the "pension law requirements", i.e. you must have paid at least 36 months of compulsory contributions to the statutory pension insurance scheme within the last five years. In total, you must be insured with the DRV for at least five years.

How much is my reduced earning capacity pension??

Your pension is based on the earning points you have already earned. These are extrapolated as if you had worked until you reached the standard retirement age – however, this does not apply to "old cases". Mandatory deductions are added. These ensure that in 2017 just 772 euros per month came out for the average pensioner with a reduction in earning capacity.

So it’s no wonder that a large proportion of all pensioners with reduced earning capacity can’t make ends meet without additional income. Good things come to those who have a spouse who earns well. Those who are not so lucky have two options: On the one hand, there is the basic income support for reduced earning capacity – this tops up the income from the reduced earning capacity pension to Hartz IV level.

Alternatively, you may also work as a disability pensioner, but only up to a certain limit.

How much additional income am I allowed to earn?

If you receive a full pension for reduced earning capacity, you can earn up to 6300 euros per calendar year from a part-time job without having your pension reduced. This amount is based on the income of a mini-job: 10 x 450 euros = 4500 euros and twice a year would be up to 900 euros in it – so a total of 6300 euros. In any case, inform the pension provider if you take up a part-time job.

Once a year, a comparison is made between the supplementary earnings limit and what you have actually earned. If you exceed the cap, the difference is divided by 12 and 40 percent of this amount is deducted from your reduced earning capacity pension. In addition, a so-called "supplementary earnings cap" applies to supplementary earnings for the reduced earning capacity pension, which is calculated individually. If you break this additional sound barrier across years, the part of your earned income above this will be fully counted towards your pension.

However, it is important to note that if you keep your side job below 6300 euros per year, there will be no reduction in your reduced earning capacity pension.

Secondary job with partial reduction in earning capacity pension

Of course, you can also have a part-time job if you receive half of your disability pension. However, there is also a limit here – if you earn more, your pension will be reduced proportionately.

This additional income limit is determined individually by the pension insurance, please talk to your case worker at the DRV. However, this amount is at least 15138.90 euros in 2019 .

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