If you’re working in Germany, you generally have a right to participate in a company pension scheme, known as betriebliche Altersversorgung (bAV). This applies to nearly all employees, whether full-time or part-time. By law, employees can request to convert a part of their salary into pension contributions, allowing you to save directly from your monthly income for retirement.
What are the employer’s legal obligations under bAV?
Employers must offer a company pension scheme and allow employees to make these salary conversions. Since 2018, employers are required to add an extra 15% to your bAV contributions. This additional contribution comes from the social security savings that employers benefit from when you opt into a bAV. So, not only are you contributing, but your employer is required to help grow your pension savings too.