From the 63rd year of age, employees that have been in contributory employment in the last 5 years (1080 days) have the right to apply for a partial retirement.

A partial retirement is a voluntary agreement between the employee and the employer. It gives older workers a transition from working life to retirement.

Make sure that the partial retirement does not end in an unwanted unemployment: in order to avoid this unfortunate event, you should be already entitled to pensions.

Partial Retirement Models

  • Model 1

Working hours are reduced by 50%.


  • Model 2 (Block Model)

After a period of non-reduced working time, follows an exemption from work, the employment allowance amounts to 50% in both periods of time.

Regulation since 01.01.2006

In the case of early retirement contracts, it must be taken into account that from 2006 onwards, the age limit for the early retirement pension has increased from 60 to 63 years. This increase is made for the transitional years 1946-1948 in monthly steps. From 1949 onwards, a premature retirement is possible only from the age of 63.

Pension Insurance Contributions

The employer must pay additional contributions to the pension insurance during the period of partial retirement, so that the pension amount is not too low. Payments shall be made to the amount equal to the difference between 90% of the previous work allowance and the employment allowance during the partial retirement period. The maximum limit is the pension insurance contribution limit for the respective year. In order to avoid a reduction of the pensions, workers can pay additional contributions in order to receive a higher annuity later.

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