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How much does the employer add to a company pension in Germany?

In short

How much does the employer add to a company pension in Germany? If you convert salary, the employer must add at least 15 percent of the amount, as far as it saves social charges. On 200 euros that is 30 euros a month. Where a company enrols all staff automatically without a collective agreement, it is at least 20 percent since 2026. Many employers add more voluntarily.

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What it costs

Top ups and limits for 2026 by law and official figures.

Example	Typical range
Mandatory top up on 100 euros converted	15 euros a month
Mandatory top up on 338 euros, full tax and charge free allowance	50.70 euros a month
Auto enrolment without collective agreement, 200 euros converted	at least 40 euros a month
Voluntary top up of 20 to 50 percent on 200 euros	40 to 100 euros a month
Low earner subsidy 2026	30 percent of up to 960 euros, at most 288 euros a year

Limits and rates as of October 2026 by law and the official figures.

The range of voluntary top ups is a guide value from our quoting practice.

This is an orientation, not tax or legal advice.

Worked example

3,000 euros gross, 150 euros converted

How the top up works with the legal minimum and with a voluntary 30 percent.

Your conversion	150 euros
Mandatory top up 15 percent	22.50 euros
Into the contract with mandatory top up	172.50 euros
Voluntary top up 30 percent	45 euros
Into the contract with 30 percent	195 euros

With 30 instead of 15 percent, 270 euros more a year go into your company pension without your net pay falling.

Where the mandatory employer top up comes from

When you convert part of your gross pay into a company pension, your employer pays no social charges on that part. The Company Pensions Act, Betriebsrentengesetz, requires the employer to pass on this saving to you as a flat 15 percent of the converted amount.

Since 2022 this applies to all contracts, including older ones. The top up goes into your contract on top and is itself free of tax and social charges within the limits.

Your monthly conversion	Mandatory 15 percent	Into the contract
50 euros	7.50 euros	57.50 euros
100 euros	15 euros	115 euros
200 euros	30 euros	230 euros
338 euros	50.70 euros	388.70 euros

When the top up is smaller or missing

The duty only applies as far as the employer really saves social charges. If you earn above the health insurance ceiling of 69,750 euros a year, it saves less and may limit the top up to its actual saving. Above the pension insurance ceiling of 101,400 euros it saves nothing.

For a support fund, Unterstützungskasse, and a direct pension promise there is no statutory top up. A collective agreement can also regulate it differently, for example with a fixed employer contribution.

If your employer funds the pension entirely itself, without you converting pay, the amount is freely agreed. You only have a right to it if your employment contract or a collective agreement says so.

More top up: auto enrolment and voluntary extras

Under the second Betriebsrentenstärkungsgesetz, firms without a collective agreement may since 22 January 2026 enrol all staff automatically in salary conversion through a works agreement. Anyone who does not want it opts out. In return the top up must be at least 20 percent, regardless of what the employer saves.

Many employers pay more than the minimum to keep staff. Ask for it directly and have the amount written into the salary conversion agreement.

Model	Top up
Statutory duty with salary conversion	15 percent, as far as social charges are saved
Auto enrolment without collective agreement	at least 20 percent
Voluntary company rule	often 20 to 50 percent, freely agreed
Collective agreement	as agreed, also fixed amounts
Fully employer funded	freely agreed

Support for low earners

If your employer pays its own contribution for staff on low pay, it gets 30 percent back through payroll tax. In 2026 this applies up to 2,575 euros monthly pay and for up to 960 euros a year.

From 2027 the pay limit rises to 3 percent of the pension insurance ceiling, the eligible contribution to 1,200 euros and the subsidy to up to 360 euros a year. On a low salary, ask about this route specifically.

The limits, honestly

The top up often makes a company pension worthwhile, but it does not offset everything. In old age, members of statutory health insurance pay about 21 to 22 percent health and care contributions on the pension above the allowance, and the pension is taxable.

High contract costs can almost eat up the top up in the first years. Ask for the costs in euros before you sign.

Step by step

Ask HR which funding route is used and how high the top up is.
Check whether a collective agreement or works agreement has its own rule.
Have the top up written into the salary conversion agreement.
On your first payslip, check the conversion and the top up separately.
Compare the annual statement with the amounts paid in.

Checklist

Top up in percent or euros in writing
Funding route with mandatory top up
Collective agreement checked
Conversion within 338 euros a month
Contract costs known in euros
On low pay, asked about the low earner subsidy

Common mistakes

Not claiming the mandatory top up
Relying on a verbal promise of a voluntary top up
Counting on the full 15 percent above the contribution ceiling
Leaving out the deductions in old age when doing the sums

Questions and answers

Frequently asked

Does every employer have to pay 15 percent?

With salary conversion through Direktversicherung, Pensionskasse or Pensionsfonds yes, as far as it saves social charges. A collective agreement can differ.

Does the top up apply to old contracts?

Yes, since 2022 for all salary conversions, including those taken out before 2019.

Can the employer offset the top up against an existing contribution?

If it already pays its own contribution of the same amount, that can fulfil the duty. Ask to see how it is split.

Do I keep the top up if I resign?

The mandatory top up yes, like your converted pay it vests immediately. For voluntary extras it depends on the promise, so ask.

Does the employer pay during parental leave?

Without pay there is no conversion and so no top up. The contract rests or continues with your own payments.

Is the top up taxable?

Not today, as long as all contributions together stay within 8 percent of the contribution ceiling. The later pension is taxable.

Sources

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