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The government projects that implementing this measure would incur a budget expense of €890 million annually.
Chancellor Friedrich Merz's partnership with the Social Democrats is anticipated to endorse the so-called active pensions scheme on Wednesday.
The coalition aims to lessen the adverse effects of an aging labor force amid a deficit of skilled workers following three years of economic stagnation, according to the FT. In Germany, like in much of Europe, retirees can work while receiving their pensions, but Berlin aims to enhance the appeal of employment for them with tax incentives.
The bill indicates that structural challenges are arising in the German labor market due to demographic changes. "The baby boomer cohort will slowly retire over the next few years, while the number of youths joining the labor market is decreasing." This is resulting in a lack of qualified workers in numerous industries.
source: ft.com
Chancellor Friedrich Merz's partnership with the Social Democrats is anticipated to endorse the so-called active pensions scheme on Wednesday.
The coalition aims to lessen the adverse effects of an aging labor force amid a deficit of skilled workers following three years of economic stagnation, according to the FT. In Germany, like in much of Europe, retirees can work while receiving their pensions, but Berlin aims to enhance the appeal of employment for them with tax incentives.
The bill indicates that structural challenges are arising in the German labor market due to demographic changes. "The baby boomer cohort will slowly retire over the next few years, while the number of youths joining the labor market is decreasing." This is resulting in a lack of qualified workers in numerous industries.
source: ft.com
