For many there will be more money from July 2024
Statutory pension insurance is not only available to retirees. It also helps people who are too ill to work six hours or more a day in the long term. 1.8 million people receive a full or partial disability pension – depending on whether and how many hours they can still work. This includes younger people as well as employees close to retirement.
The good news for all those who have already been receiving disability pensions for a long time: you will receive more money from July 2024. Specifically, it concerns two groups of existing pensioners:
- Anyone who received a pension for the first time between 1 January 2001 and 30 June 2014 will receive a supplement of 7.5 percent.
- First-time purchasers between July 1, 2014 and December 31, 2018 will receive a 4.5% surcharge.
As a result, old-age and survivors’ pensions, which are linked to a disability pension, are also higher. According to the German Pension Insurance, this will increase a total of around three million pensions. It is not necessary to submit an application. Those eligible receive the supplement automatically. There have already been improvements in 2019 for people with reduced earning capacity who start retirement later.
the essentials in summary
Claim. If you are permanently ill and can no longer return to work in the long term, you are entitled to a disability pension like someone with statutory pension insurance. But conditions apply. And: You are only entitled to the full pension if you can work less than three hours a day. Otherwise, a partial disability pension is an option.
Sickness benefit. As an employee with statutory health insurance, try to make full use of your entitlement to a maximum of 72 weeks of sickness benefit. As a rule, sickness benefit is significantly higher than disability pension. Your health insurance company cannot force you to apply for a pension. However, it can ask you to submit one within ten weeks. Rehabilitation request deliver. If rehabilitation cannot restore your ability to work, the rehabilitation request will be considered a pension request. At least make the most of the ten week period for the rehabilitation application. You can read details about sickness benefit in the special Sickness benefit.
Application. If you anticipate being too ill to work long-term, apply for a statutory disability pension. Ours shows you how to do it Checklist.
contradiction. If your pension application is not approved, you can lodge an objection free of charge within one month. More about this in the section If the request is rejected.
Old age pension for people with severe disabilities. If you are seriously disabled and are not entitled to a disability pension, you can retire two years before the normal retirement age, or even earlier, with reductions. You can find everything you need to know in our special Pension for people with severe disabilities.
Requirements for disability pension
To be entitled to a pension due to reduced earning capacity, insured persons must meet certain requirements. As a rule, you must do so before the disability occurs
- have at least five years of contribution time – this includes not only periods of compulsory contribution from employment subject to social security contributions, but also periods of education and childcare or voluntary contributions,
- have paid mandatory contributions for at least three years in the last five years.
In certain cases, such as accidents at work or occupational illnesses, the minimum insurance periods may also be shorter.
Only insured persons who meet these insurance requirements have a chance of their disability pension claim being successful.
Learning capacity. The payment of a disability pension depends on how many hours the affected person can still work per day. © Stiftung Warentest / René Reichelt
Pension is not occupational disability insurance
In addition to the insurance formalities, policyholders must also meet health requirements. Statutory pension insurance is paid if an illness means the policyholder can only work less than six hours a day. The requirements are not tied to specific illnesses, such as depression or cardiovascular problems.
Pension insurance grants a full disability pension if the claimant is permanently ill and can only work less than three hours a day. It does not matter what job the person was doing at the beginning of the disability.
Specifically, this means: A carpenter who can no longer work as a craftsman, but who can still work in a call center, would not receive a disability pension. If he wants to protect himself if he can no longer perform a certain job, he must take out private occupational disability insurance.
Tip: Our test Occupational disability insurance will help you find the right policy.
Elderly people have even broader protection
If someone can still perform any activity between three and six hours a day, but no more, they will not receive the full disability pension. However, it may amount to a partial disability pension.
The value of the partial disability pension corresponds to half of the full disability pension. However, there is additional protection for older workers that younger workers are no longer entitled to.
Older workers. Insured persons born before January 2, 1961 are entitled to a partial disability pension, even if they can only work to a limited extent in a profession that corresponds to their qualifications. In these cases, there are often disputes over which activities are comparable and reasonable. If pension payments are rejected, those affected should seek advice contradiction insert.
Younger workers. The following applies to all employees born after 2 January 1961: They will only receive a disability pension if they are no longer able to work for health reasons. Their professional qualifications and previous jobs do not matter.
Table: Total or partial disability pension?
Anyone who can work less than six hours a day for health reasons is entitled to a statutory disability pension.
No part-time work: pension insurance pays in full
Most disability pensioners receive a full pension. Sometimes a full disability pension is paid even if the insured person can still work between three and six hours a day, i.e. they would only be entitled to a partial disability pension, but cannot find a part-time job due to the situation of the job market.
Despite improvements in recent years, payments alone are rarely enough to maintain a comfortable lifestyle. They are often nothing more than a safety net. The amount of the pension depends on how much the insured person earned previously. But that’s not all. Our calculation examples in the section What is important for a high pension? show that the amount of pension payments also depends on so-called non-contributory periods, for example, of study.
Additional earnings limits have been higher since 2023
However, since the beginning of 2023, those who are fully and partially disabled have been able to earn significantly more. The limit is adjusted every year.
- Partial disability. When receiving a partial disability pension, the additional earnings limit in 2024 is 37,117.50 euros.
- Complete disability. For total disability pensions, the limit in 2024 is 18,558.75 euros.
Even with the higher additional earnings limits, the general rule is that insured persons can only work within the limits of their reduced performance capacity, which is the basis of their disability. This means that anyone who earns a lot because they work a lot loses their right to a pension, even if they meet the additional income limits. However, there is now the possibility of trial work, which does not compromise your pension entitlement, even if you work six hours or more a day.
New: Experimental work possible for up to six months
Since the beginning of 2024, people receiving disability pensions can work without restrictions for half a year on a trial basis without losing their pension entitlement. The daily working time restriction of up to three or six hours is suspended during this period.
Insured people can combine their pension with employment and then decide whether part-time or full-time employment is an option. If this is not the case, you will not need to go through the complex approval process again. You will not have to pay back your pension if you decide to continue working after the probationary period ends.
In general, the additional earnings limits mentioned above apply to earnings during probationary work. In individual cases, however, higher amounts may apply, depending on your income before the reduction in earning capacity. Earnings exceeding the additional earnings limits are credited to 40% of the pension.
Tip: If you wish to work on a trial basis, you must inform your pension insurer.
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