Active pension 2026: What payroll offices and HR departments need to prepare now

The shortage of skilled workers in Germany is intensifying. According to DIHK, there are 400,000 open positions that cannot be filled. The federal government has responded: With the Aktivrente, working retirees will receive a tax allowance of up to 2,000 euros per month on their earnings starting in January 2026.

For payroll offices and HR departments, this means: new billing logic, new documentation obligations, and new consultations with clients and employees. This article explains what exactly is changing and how you can master the transition.

What is the Aktivrente?

The Aktivrente is a tax allowance for retirees who continue to work alongside their pension. It replaces the previous earning limit and aims to make employment in retirement more attractive.

The most important facts

Who benefits?

The allowance applies to recipients of a standard retirement pension who are still employed. Specifically, this concerns:

• Retirees in part-time or full-time employment

• Retirees with minor employment (mini-job)

• Self-employed retirees with income from business operations

Not affected are early retirees before reaching the standard retirement age and those on reduced earning capacity pensions.

Why the Aktivrente is coming now

The numbers speak for themselves: According to the Federal Statistical Office, already in 2024, 1.3 million people over the age of 65 were employed. The trend is rising. At the same time, the baby boomer generations are retiring. The gap is growing.

The demographic pressure

The job market is facing a structural problem:

• 2025-2035: The baby boomer generation (1955-1969) reaches retirement age

• By 2035: About 4 million fewer workers than today

• Even now: 400,000 unfilled positions according to the DIHK skilled labor report

The Aktivrente is one component to keep experienced specialists longer in the job market.

What companies gain from it

It will become more attractive for employers to hire retirees or retain them beyond the standard retirement age:

1. Lower labor costs: No contributions to unemployment insurance

2. Tax relief: The allowance makes gross salary increases cheaper

3. Know-how remains: Experienced employees do not leave overnight

What changes in payroll processing

The technical implementation of the Aktivrente requires adjustments in three areas: master data, calculations, and documentation.

1. Master data maintenance

Before the allowance can be applied, you need to know who is eligible:

To be recorded: - Date of birth (to verify the standard retirement age) - Pension receipt (yes/no) - Type of pension (standard retirement vs. early retirement vs. reduced earning capacity) - Pension notice or proof of pension insurance

Challenge: Many companies do not know which employees are already receiving a pension. The date of birth alone is not sufficient. Pension receipt must be actively queried and documented.

2. Allowance calculation

The Aktivrente allowance is deducted from the taxable salary monthly:

Calculation logic:

Gross salary:                    3,500 €
- Aktivrente allowance:      -2,000 €
= Taxable income:    1,500 €

Important: The allowance cannot lead to a negative value. With a gross salary of €1,500, only this amount will be counted as an allowance, not €2,000.

Annual consideration: The allowance is a maximum of €24,000 per year. If employment starts or ends in the year, a proportional calculation is made.

3. Documentation and proof obligation

For the payroll tax audit, you must be able to prove:

• Who received the allowance

• On what basis (pension notice)

• In what amount (monthly and cumulative)

Recommendation: Create a separate documentation that includes the following fields: - Employee ID - Date pension starts - Type of proof and entry date - Monthly allowance - Cumulative annual allowance

Timeline: When you should do what

The Aktivrente will take effect on January 1, 2026. The preparation effort should not be underestimated.

Immediately (January 2026)

• Inventory: Which employees are over 65? Who is already receiving a pension?

• Start inquiry: Written inquiries to potentially affected individuals

• Check software: Can your payroll system handle the allowance?

February-March 2026

• Collect evidence: Request pension notices or confirmations from the DRV

• Maintain master data: Enter pension receipt and type into the system

• Test runs: Trial calculations with allowance application

From April 2026

• Regular operation: Allowance is automatically considered

• Monitoring: Keep an eye on the annual allowance (€24,000 limit)

• Consultation: Inform clients and employees about the implications

Typical questions from practice

In conversations with payroll offices and HR departments, the same questions keep arising:

“How do I recognize who is eligible?”

Age alone is not enough. A 67-year-old could be an early retiree with deductions. Then they would not be eligible. Or they continue working without receiving a pension. In that case, there would be no allowance.

Solution: Active inquiry with three questions: 1. Are you receiving an old-age pension? 2. If yes: Is it a standard retirement pension (without deductions)? 3. Can you provide a pension notice or a DRV confirmation?

“What happens with multiple employers?”

The allowance of €2,000 applies in total, not per employer. In the case of multiple employment relationships, the employee must allocate the allowance.

In practice: The employee informs the primary employer what portion of the allowance they would like to claim there. The other employers receive the rest. Or no allowance.

“Do I have to apply the allowance automatically?”

No. The employee must apply for the allowance and provide proof. Without proof, there is no application. This helps you avoid mistakes.

How AI helps with the implementation of the Aktivrente

The biggest challenge with the Aktivrente is not the calculation. That is simple. The challenge lies in identifying the eligible parties and ensuring complete documentation.

Automatic identification of eligible parties

Modern AI systems like RITA can systematically evaluate master data:

• Age screening: Automatic identification of all employees over 65

• Document analysis: Pension notices are recognized and evaluated

• Consistency check: The system reports discrepancies (e.g., age 68 but no pension receipt entered)

Example: A payroll office with 500 clients and 3,000 employees would have to manually check every single one. With AI support, a list of potentially eligible individuals can be created in minutes instead of days.

Document processing without retyping

Pension notices come in various formats: scanned by post, as PDFs, and sometimes as photos from smartphones. AI-supported document processing extracts the relevant data:

• Pension type (standard retirement pension yes/no)

• Pension start date

• Insurance number

This data flows directly into the master data without manual entry and without typographical errors.

Allowance monitoring throughout the year

The annual allowance of €24,000 must be monitored. For employees with fluctuating incomes (e.g., commissions, overtime), the allowance can be exhausted more quickly than expected.

AI support: - Automatic warning as the €24,000 limit approaches - Forecast based on the current year’s performance - Notification to the case worker if manual intervention becomes necessary

Audit-proof documentation

Every allowance application is automatically recorded:

• Who received which allowance and when?

• On what basis of proof?

• Who authorized it?

During a payroll tax audit, you can present this data at the push of a button without sifting through files.

Checklist: Implementing the Aktivrente in 2026

Use this checklist for your clients or your company:

Master data

• All employees over 65 identified

• Pension receipt queried (yes/no/which type)

• Proof (pension notice) requested and stored

• Master data updated in the payroll system

Processes

• Calculation logic checked/set up in the payroll system

• Documentation storage defined (digital recommended)

• Responsibility for allowance management clarified

• Escalation process for uncertainties established

Communication

• Clients/managers informed about the Aktivrente

• Affected employees contacted

• FAQs prepared for inquiries

Quality assurance

• Test payroll calculation with allowance conducted

• Annual allowance monitoring set up

• Audit points for payroll tax audits defined

Conclusion: Preparation pays off

The Aktivrente is not a revolution. But it requires clean processes. Those who maintain master data now, gather proof, and prepare documentation will save themselves a lot of trouble throughout the year.

For payroll offices with many clients or HR departments with many retirees, looking into AI-supported tools is worthwhile. They take care of the diligent work: identifying eligible individuals, evaluating documents, and monitoring allowances.

The result: More time for consulting. Less risk during audits. And satisfied clients who receive their correct payrolls on time.

Next steps

Would you like to know what AI-supported payroll processing looks like in the implementation of the Aktivrente?

Three options, all free:

1. Watch the webinar: In 30 minutes, we show how RITA checks master data and processes documents

2. Book a consultation: 30 minutes, non-binding. Your questions, our answers

3. Test demo access: try project b. with real test data

You don't have to decide anything today. But knowing what is possible never hurts.

Learn more at project-b.dev

This article was published in January 2026 and reflects the current legal status. For specific tax questions, please contact your tax advisor.