Every year brings new developments and amendments in German employment law. Below is a summary of what to expect in 2026. A particularly noteworthy development is the loosening of rules regarding fixed-term employment for employees who have reached the statutory retirement age.

Quick Hits

• In 2026 in Germany, the prohibition on prior employment by the same employer for concluding fixed-term contracts without objective justification for employees who have reached the statutory retirement age will be eliminated, allowing for up to eight years and twelve contracts.
• The EU Regulation on AI will impose core obligations for high-risk AI systems starting August 2, 2026, affecting HR processes like candidate pre-screening and performance analytics, requiring traceable documentation and transparency.
• The Second Company Pensions Strengthening Act will facilitate access to occupational pensions through company-level collective agreements and individual agreements with union consent, including opt-out arrangements and additional measures like a dynamic low-income subsidy.

General Adjustments

At the beginning of the year, the following key thresholds will be adjusted:

• Contribution assessment ceiling for health and long-term care insurance: monthly 5,812.50 / annually 69,750
• Annual earnings threshold (JAEG) for statutory health insurance: 77,400 annually / 6,450 monthly
• Contribution assessment ceiling for pension insurance: monthly 8,450 / annually 101,400
• Reference amount West/East:...

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