Financial incentives for work in retirement age: CDU and Greens with similar proposals of up to 10,000 euros per year

Financial incentives for work in retirement age: CDU and Greens with similar proposals of up to 10,000 euros per year

There is a shortage of skilled workers in Germany, while at the same time many older employees are working beyond retirement age. Economics Minister Robert Habeck from the Green Party and CDU General Secretary Carsten Linnemann have therefore suggested creating financial incentives to encourage older employees to work longer. Both politicians have developed similar concepts that could potentially bring employees up to an additional 10,000 euros a year. Linnemann's proposal stipulates that up to 2,000 euros per month of income for employees of retirement age remain tax-free. Habeck, on the other hand, suggests that older employees should receive the previous employer contributions to pension and unemployment insurance in addition to their salary. These contributions amount to 10.6 percent of gross salary. With an average income, Habeck's proposal would correspond to an additional income of 434 euros per month or 5,215 euros per year. The debate over these proposals is controversial. The left warns that older people should be forced to work until they die. The SPD fundamentally rejects incentives for older workers, while the FDP supports incentives for longer working hours but rejects the CDU proposal. It remains to be seen what impact these proposals will have on the labor market and the financial sector. (Source: www.businessinsider.de)