Mandatory State Pension Provision

Germany has a statuary pension scheme. Contributions are paid into the pension fund during your working life. The “Generationenvertrag” (intergenerational contract) that forms the basis of the German pension system states that the generations shall support each other and pensions are paid from the contributions of the current working generation of employees. This guarantees that sufficient pension duties are paid to care for the increasing number of pensioners.

Every person who performs a job which requires them to have social security must pay into the pension fund. However, there are some exceptions. The best way to find out if you have to pay into the pension scheme is to ask your employer or at the pensions office. If you are planning on staying in Germany long-term and will therefore receive a pension, it is recommendable to obtain information about the possibilities of a private pension scheme.