Germany's Bundestag approved the voluntary military service law. Every 18-year-old man must complete online fitness questionnaires from January 2026. And from July 2027, every 18-year-old man must undergo compulsory medical checks. [1, 2]
The Bundestag finally passes the pension reform. The pension reform will now go to the Bundesrat for the vote on 19th December. More on it later.
Bundestag Passes Pension Reform
Germany's Bundestag approved the Rentenpaket today. It got 318 votes in favor. This gives Chancellor Merz's coalition a strong win.
The reform brings the following changes.
Pension level remains at 48%
The pension level remains at 48% of the current average wage of all insured personsuntil 2031.Without this reform, the pension level was supposed to decline.
For now, there is no rise in your pension contributions. The government is funding the gap using tax money. However, you can expect the contributions to increase from 18.6 to 19.8 from 2028 onwards.
Active pension
From January 2026, people working beyond their retirement age will receive the first €2,000 of their monthly salary tax-free. You also get relief from social security contributions.
Currently, for children born before 1992, the mother receives 2.5 pension points for the years she was unable to work to care for the child. However, under this new reform, the mother will receive the full 3 points.
This is similar for the parents of kids born after 1992.
The reform also applies to fathers who took time off to take care of their child. The government funds the gap using tax money.
Prior employment ban lifted
Earlier, it was tough for your former employer to hire you once you reached retirement age. However, the prior-employment ban has now been abolished. This means your former employer can rehire you on a temporary basis in the same position.
Next Steps
The pension reform package has only been approved in the Bundestag. The Bundesrat still has to vote on it. The vote will be held on December 19.
If the pension reform package passes the Bundesrat, then the changes will take effect from January 1, 2026.
What does this mean for you?
The German pension system works with an intergenerational contract. This means that the current working population pays for the pensions of the retirees.
With this reform passed, it increases the burden on the current generation.
Given the current demographic shift, there won't be enough working people to pay for the current generation's pensions when they retire.
This means you need to handle your retirement planning yourself. The best way to do so is to
invest a fixed monthly amount in broad market ETFs,
Self-employed individuals must manage their Social Security contributions themselves. Health insurance is the only mandatory insurance for them. For certain self-employed professions, pension insurance is also mandatory.
Deductible expenses include home office costs, utilities, equipment, software, training, transportation, and professional services.
Travel and meals are allowed but heavily scrutinized.
Annual tax deadlines (income tax, VAT annual return, Gewerbesteuer) are July 31 of the following year (without a tax advisor).
Monthly/quarterly VAT returns are due by the 10th of the following month.
Common pitfalls
Not keeping receipts or mixing personal and business transactions.
Waiting too long to organize bookkeeping results in lost deductions.
Filing a tax return is mandatory for all individuals who are registered as self-employed in Germany. It doesn't matter if you earn 0€ or 100,000€.
Don't expect the Finanzamt to notify you about the rules and regulations. You have to ensure that you are aware of all the latest regulations and follow them.
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Can Your Manager Force You to Cancel Your Approved Vacation?
In Germany, once your vacation is approved, your employer cannot simply take it back.
Rights around vacation days
You receive at least 20 paid vacation days per year if you work a five-day week (§3 BUrlG).
Once your employer approves your vacation, it is legally binding for both sides.
Your wishes must be considered when planning time off (§7 (1) BUrlG).
When can an employer cancel your vacations?
Your employer can cancel your vacation only in emergencies that threaten the company’s survival. Every day operational problems, such as a sick colleague, a big project, etc., are NOT valid reasons.
Your Rights if Your Employer Cancels Your Vacation
All canceled days must be returned to your vacation balance.
You must be reimbursed for all non-refundable costs (flights, hotels, tours).
The employer must prove the emergency and justify the request.
How to handle forced vacation cancellation
Stay calm and point out that the approved vacation is binding.
Ask for the reason in writing.
If you choose to cancel your vacation voluntarily, negotiate reimbursement first and get it in writing.
Contact your workers' council if available and if required.
Get legal advice if your employer insists without a valid reason.
Handling Insurance Policies After a Relative’s Death
When a loved one passes away, handling paperwork can feel overwhelming. However, it’s essential to notify their insurance companies quickly. The reporting deadline depends on each insurer’s policy.
Depending on the contract, the reporting deadlines range from 24 to 72 hours. This is not much time to find the necessary documents.
This is why you must keep insurance documents where your relatives can easily find them. Also, let your relatives know the document location in advance.
You must also inform the statutory pension insurance provider about your relative's death. If the deceased person was receiving a pension, payments will stop immediately.
If you fail to inform the insurer, you'll have to repay any overpaid pension amounts.
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deceiving users with paid blue checkmarks that no longer verify identity,
hiding political ad data, and
blocking researchers from public platform information. [1]
Shop bankruptcies surged among small retailers, as they faced competition from big chains and online giants. [2]
A tax relief package raised commuter allowances and cut VAT on restaurant food to 7%. [3]
Germany is providing an extra €100 million via KfW to Ukraine to help repair and maintain Ukraine’s energy infrastructure after Russian attacks. This is on top of €60 million already pledged this year. Germany stressed strict compliance and governance rules amid recent Ukrainian anti-corruption investigations. The UK and Sweden have also announced new energy-related support packages for Ukraine. [4]
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