Germany: Employee Benefits & Compensation

Germany's Pension Commission has proposed sweeping reforms that would fundamentally reshape retirement planning, workforce transitions, and employment structures. From dynamic retirement ages linked to life expectancy to the potential elimination of the senior part-time block model and minijobs, these recommendations carry profound implications for employers navigating restructuring, social plans, and pension commitments.

Effective January 1, 2026, employers in Germany must inform newly hired third-country nationals about the availability of free information and counseling on German labor and social law.

Teilzeitbeschäftigte dürfen beim Entgelt nicht anders behandelt werden als Vollzeitbeschäftigte, es sei denn, es liegt ein sachlicher Grund für die unterschiedliche Behandlung vor.