On June 24, 2026, German Chancellor Friedrich Merz announced that he intends to implement the government’s Pensions Commission’s recommendations for comprehensive pension reform by the end of the year.

Quick Hits

• The German government’s Pensions Commission has presented thirty-three recommendations that the government intends to address and implement promptly.
• Mini-jobs would largely lose their special status under tax and social security law; special provisions for midi-jobs could also be eliminated.
• The standard retirement age for eligibility for old-age pensions would rise moderately after 2031, while incentives for early retirement are to be reduced.

Current Status: Reform Package, but No Law Yet

The commission’s recommendations are, for now, political proposals. Concrete implementation—such as through legislative procedures—is still pending. Nevertheless, the proposed key points are notable because they may affect typical human resources and compensation structures—and because the federal government has sent a clear signal that it intends to implement all proposals.

At the heart of a potential reform is the goal of placing the statutory pension system on a more stable long-term financial footing and broadening Germany’s overall retirement savings framework beyond the statutory pension. To that end, occupational and private retirement plans are expected to play a greater role in the future. Furthermore, the commission recommended introducing a statutory funded...

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