How much is allowed to earn

Special rule during Corona

Pensions and part-time jobs in 2022: This is how much some pensioners are allowed to earn on top of their pensions

Updated: 19.01.2022 06:24

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  • Author Felix Busjaeger

To make up for current staff shortages, retirees are currently allowed to earn significantly more money on top of their 2022 pensions. The left nevertheless fears old-age poverty.

Berlin- Living well in old age. That’s what many employees in Germany want when they look ahead to their retirement and pensions. It is no longer uncommon for senior citizens to have to supplement their pensions with a second job in 2022. The traffic light government wants to secure the pension with a five-point plan. According to an inquiry by the Left Party, every third full-time employee in Germany faces a gross pension of less than 1,300 euros a month after 45 years of work.

This is reported by the newspapers of the Funke Mediengruppe with reference to a response from the Federal Ministry of Labor. There is also good news for pensioners with early retirement pensions in 2022: They are allowed to earn up to 46.060 euros additional earnings.

Regular income: Pension
Entry age in Germany: 67. Year of life
Average pension man: 1178 Euro
Average pension woman: 768 euros

Additional earnings limit for pension 2022: Additional earnings are taxed

Golden years for pensioners in 2022: "The temporary special regulation for high supplementary income limits for early retirees is now to apply until the end of 2022", Daniela Karbe-Gebler of the Association of taxpayers explained as early as winter 2021, according to the German press agency. It is important to note that earnings in excess of the supplementary earnings limit of the 2022 pension are counted as 40 percent of the pension. Once the standard retirement age has been reached, employment no longer affects your retirement pension. Severely disabled people must also observe special rules when leaving the workforce earlier.

Pension 2022: Income must be taxed regardless of earnings limit

As the German Pension Insurance informs, the current increase of earnings limits is intended to counteract personnel shortages caused by the Corona pandemic. From 2023, the original additional earnings limit of 6300 euros will probably apply again. The increase in earnings limits does not apply to reduced earning capacity and survivors’ pensions. Independently of the respective earnings limit and the pension taxation the additional income is to be taxed however. Meanwhile, the traffic light government under the leadership of Labor Minister Hubertus Heil wants to raise the minimum wage in Germany. For Verdi, this could cause problems for pensions.

Special conditions could apply to people who receive a company pension in addition to their statutory pension: For this reason, Deutsche Rentenversicherung recommends in a paper that those affected should check with the provider of their company pension to see if drawing a partial pension could affect the amount of their company pension. In some circumstances, there could be reductions or suspension of company pensions.

Pension 2022: Left-wing parliamentary group leader Dietmar Bartsch warns of old-age poverty

According to the Funkemediengruppe newspapers, workers would have to earn at least 2800 euros a month before deductions at the current pension level of the 2022 pension to reach a statutory pension of 1300 gross, according to the Federal Ministry of Labor. To reach 2500 euros gross, a monthly salary of 5350 euros before taxes and contributions is currently required, he said. For this reason, Left Party parliamentary group leader Dietmar Bartsch warns of the increasing danger of old-age poverty. Meanwhile, current pensioners are seen as the biggest winners of the crisis. Meanwhile, the president of the pension insurance, Gundula Robbach, has turned against pessimism in the debate about the future pension in Germany.

While he welcomes the decision by the traffic light government led by Chancellor Olaf Scholz (SPD) to raise the minimum wage in Germany to 12 euros, Bartsch says he would favor a higher increase. „Because with 12 euros minimum wage, you will be at the end of a life- 45 working years nevertheless fall with the pension in basic security", according to the politician. This circumstance undermines the confidence in the legal pension insurance, if after a complete working life only few hundred euro remain over Hartz IV level. Bartsch therefore called for the pension level to be raised at least to over 50 percent.

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