General Information

Participation in the German state pension scheme is mandatory. Contributions are automatically deducted from your gross salary as part of the overall social security system. Your pension insurance number is the same as your social security number.

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Contributions

The contribution rate is 18.6% (2025), split equally between you and your employer (9.3% each). These contributions are not saved or invested for your individual retirement but are used to fund current pensioners.

Contributions are only required up to the income ceiling (Beitragsbemessungsgrenze), which is EUR 8,050 per month in 2025. If your gross income is below this threshold (e.g., EUR 7,300), you pay contributions on the full amount. Income above the ceiling is not subject to further pension deductions but also doesn’t increase your future pension entitlements.

Tip: To maintain your standard of living in retirement, it’s advisable to supplement the state pension with private or occupational pension plans.

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Refund of Pension Contributions

Refund eligibility depends on your nationality and/or country of residence. Generally, you can apply to have your share of contributions (50%) refunded; your employer’s share is not refundable.

A refund is only possible after living outside Germany for at least 24 consecutive months.
Application form (V0901) in English:
Form V0901 – Application for Reimbursement

Germany has social security agreements with many countries. In these cases, refunds may not be possible, as contributions can be credited toward future pension rights.
For example, U.S. citizens are only eligible for a refund if they lived in Germany for less than five years.

Countries such as those in the EU, Iceland, Norway, Switzerland, and Liechtenstein allow coordination of pension entitlements, so contributions across these countries can be combined.

Further information and country-specific flyers:
German Pension Insurance – Social Security Agreements

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Pension Entitlements for Foreign Workers in Germany

To qualify for a standard pension in Germany, you must contribute for at least 60 months (5 years).

The legal retirement age is currently 66 and is increasing gradually to 67 for those born in 1964 or later (transition period: 2012–2029).

Early retirement is possible under certain conditions (e.g., long-term insurance periods or disability) but typically comes with deductions.

You must actively apply for your pension benefits and provide the required documentation.

The pension amount depends on:

• Total contribution years in Germany

• Your average lifetime income

• Age at retirement

 

Source: Deutsche Rentenversicherung Bund

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