German Pension Contribution Refunds: Frequently Asked Questions

Here, you’ll find answers to some of the most asked questions about German pension refunds. From questions about nationality, to refund amounts, we have you covered.

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How much will my total refund amount be?

The average pension refund is €11,800. However, your total refund amount will depend on your personal circumstances. Refundable contributions include:

· 100% of pension contributions deducted from your salary while you were employed in Germany.

· 50% of voluntary contributions paid, e.g. as a freelancer.

· Plus/minus contributions received/deducted through pension equalization in a divorce ruling.

Since 2018, pension insurance contributions have been fixed at 9.3% of your gross income, applied up to a monthly maximum income level (Beitragsbemessungsgrenze). In 2024, the maximum in West Germany is €7,550. If you earn above the cap, only €7,550 is subject to contribution.

How long does the refund process take?

We know that our customers want their refunds as quickly as possible. That’s why we’ve developed an efficient, streamlined process that takes less than 8 weeks on average (compared to the 6+ months it takes for self-submitted claims). Our partner law firms have a direct connection to the German pension office (Deutsche Rentenversicherung), enabling faster claims.

How much is your service fee?

Our service fee is 9.75% of the refunded amount. This includes VAT and all external law firm costs. There are no additional fees or hidden costs. Our success-based service operates on a “no refund, no fee” model, so you only pay after your refund has been received. 

Will claiming a pension refund affect my chances of employment in the future?

Claiming a refund has no impact on your employment prospects. Employers don’t consider your past, current, or future pension balance. Once your German pension refund is granted, your pension account will be reset to zero and closed. If you work in Germany again, your account will be reopened, and you’ll start afresh. However, if you’re planning to retire in Germany, or acquire German citizenship, you might want to reconsider claiming a refund. 

Is my pension refund taxable?

Pension refunds are not subject to tax in Germany. However, the refunded amount may be taxable in your home country. It’s always best to consult your local tax advisor. If required, we can provide documents to verify the source of the income.

Does my pension earn interest?

All your contributions are refunded as they were paid, without any interest applied. The German pension system uses a redistributive model, so contributions aren’t invested or saved. However, they are used to pay current pension and rehabilitation obligations.

When does the 24-month waiting period start?

Before you can claim a refund, you must wait 24 months after your last “mandatory” pension contribution was paid. Mandatory pension contributions are either:

· Paid by you while you were employed.

· Paid on your behalf while you received unemployment benefits.

· Credited to your account after maternity or paternity leave.

The waiting period starts in the month following the last pension contribution. The date of deregistration (Abmeldung) does not affect the waiting period.

I was not able to deregister when I left Germany, will this be an issue?

Deregistration is mandatory upon leaving Germany, and the pension office will request a copy of your deregistration certificate during the refund process. However, if you haven’t deregistered (or if you’ve lost your certificate), we can deregister you or request a copy of your certificate. 

Are employer contributions refundable as well?

Since 2018, the pension contribution rate applied to your gross income (capped) is 18.6%. Both you and your employer pay half of the rate (9.3%) to the Deutsche Rentenversicherung for your future retirement benefits.

If you claim a pension refund, only contributions paid by you (9.3%) are refundable. If you pay voluntary contributions, you pay both the employer and employee shares, therefore only 50% (the employee share) of what you paid can be refunded. Employer contributions cannot be refunded (neither to you nor to your employer).

Likewise, contributions paid on your behalf by unemployment insurance, or credited to your account for periods of maternity/paternity leave are non-refundable.

Do I receive the funds directly into my bank account?

For your security, a German law firm escrow account is used to receive your pension refund. This makes the process of receiving your funds quicker, and reduces transaction costs and currency exchange fees. The funds are transferred to your bank account in the currency of your choice. A German bank account is not needed for the refund, and the account does not have to be in your name.

How is my pension refund calculated?

Your German pension refund is calculated based on your insurance record. Your income below the cap (Entgelt) for every period of work will be multiplied by the corresponding contribution rate. Any periods where you received unemployment benefits or periods credited to your account for parenting are not included in the calculation. Likewise, if you received rehabilitation services, e.g. after surgery, any periods of contribution that were paid prior to you receiving those benefits will not be included. If pension splitting or pension equalization have been applied to your account, e.g. through a German court divorce ruling, the amount you receive/owe will increase/reduce your pension refund total.

If you want to calculate the amount you paid in refundable contributions to the pension office yourself prior to claiming your refund, you can do so by using your payslips, or wage tax certificates.

With payslips, you’ll need one from each December, plus the payslip of the last month you worked for each employer. You can find the annual amounts of your “RV-Beitrag” at the bottom of the slip, under “Verdienstbescheinigung”. Then, add the numbers to calculate the amount you will be refunded.

For wage tax certificates, e.g., “Lohnsteuerbescheinigung für 2024”, you’ll need your annual tax slips for each year, and for each employer. You’ll find your pension contribution at no. 23/a (Arbeitnehmeranteil). Add the numbers of each slip together to calculate the amount you will be refunded.

To get a quick estimate on how much your refund amount will be, use our free refund calculator.

Can I get my pension money back if I leave Germany?

Yes, you can get your pension money back after leaving Germany if you meet the following criteria:

· Your last pension contribution in Germany was at least 24 months ago.

· You live outside of the European Union.

· You do not hold citizenship of a European Union member state, Switzerland, Norway, Liechtenstein, or Iceland.

Additional rules apply for people from the following countries:

USA, India, Australia, Canada, Brazil, Albania, Moldova, North Macedonia, The Philippines, South Korea, and Uruguay.

If you live in one of these countries, you can only claim a refund if your German pension balance has less than 5 years of contributions.

Likewise, if you live in Japan, you can only claim a refund if your German pension balance has less than 5 years of contributions. However, if you live outside Japan, no limit applies.

If you are an Israeli citizen, you can only claim a refund before retirement if you live outside of Israel, in which no limit applies.

Turkish citizens can only claim a refund if the last mandatory pension contribution in Turkey also was at least 24 months ago (e.g. after you retired, or if you live abroad).

If you are a citizen of an ex-Yugoslav state, and you live in any ex-Yuguslav state, you cannot claim a refund. However, no limit applies if you live in another country like the USA, for example.

How much German pension will I get?

If you qualify to receive a German retirement pension (pension balance of 5 years minimum to qualify), the standard old age pension is calculated as: total earnings points x current pension value = monthly retirement pension.

For each year worked, you receive earnings points on a scale between 0 and 2, which represent your salary vs. the German average. If you earn the average salary, you get 1 point credited.

The current pension value is adjusted mid-yearly in line with income levels and inflation. Since July 2024, the value was €39.32.

For example, if you worked in Germany to qualify for a pension (5 years), and your income equaled the average German income, you’d have collected 5 x 1 point, so 5 points in total. Your monthly retirement pension (before German income tax) would be 5 x €39.32 = €196.60. 

What are German pension contribution refunds?

While working as an employee in Germany, 9.3% of your gross salary is deducted and paid to the Deutsche Rentenversicherung for your future retirement.

While some people remain in Germany, others move on. If you leave Germany, you may want to cancel your German pension to invest it in another way.

If you do qualify for a pension refund from Germany, you will be refunded the same amount that was deducted from your payslip.  

What form do I need to complete to claim a German pension refund?

If you currently live outside of Germany, you will need to complete a V0901 form to apply for your pension refund.

You will need your certificate of life and citizenship notarized, along with your payment declaration form, and refund consent form. You’ll also need payslips, a valid passport and your deregistration certificate from Germany.

At Germany Pension Refund, we streamline the refund process, giving you peace of mind.

How do I claim a VBL pension refund?

While working in Germany’s public service, you’re required to have an occupational retirement pension. The VBL (Versorgungsanstalt des Bundes und der Länder) provides this service in all German states except for Saarland (RZVK is responsible) and Hamburg (automatic refunds).

To claim a VBLklassik refund, you need to meet the following criteria:

· You left the German public sector.

· You worked in an old state* of Germany.

· Your contribution period is less than 60 months.

· You have not paid any contributions to “VBL extra”.

· You are younger than 69 years old.

*Baden Württemberg, Bavaria, West Berlin, Bremen, Hamburg, Hesse, Lower Saxony, North Rhine-Westphalia, Rhineland-Palatinate, Saarland, Schleswig-Holstein.

Please note: VBLextra contributions cannot be refunded. If you paid VBLextra contributions additionally to paying VBLklassik, your VBLklassic contributions are no longer refundable.  

Am I eligible to claim a German pension?

To qualify for an old-age pension in Germany, you need to meet the following criteria: 

· You have reached the German age of retirement. 

· Your pension balance has at least 60 months (5 years) of contributions.

If you do not have at least 5 years of contributions, but you have paid pension contributions in another European Union member state or a contracting state, you could qualify for an interstate pension from Germany. 

If you do not qualify for any kind of pension in Germany, you can claim a refund on your pension contributions once you have reached the German age of retirement. 

If you are a non-European Union citizen, you do not have to wait until you reach the German age of retirement to claim a refund on your contributions. You can claim a refund 24 months after your last pension contribution in Germany if you currently live in a non-EU country.

Can I keep my German bank account when I leave Germany?

Whether you can keep your German bank account after leaving the country depends on your bank. Usually, it depends on the type of bank account you have.

For example, if you have an account with an overdraft, a credit line, or credit cards, it’s unlikely, you’ll be able to keep those services. When you leave Germany, and especially if you move outside the EU, there’s no way for a German bank to claim money from you.

However, if your account only offers money deposits and no other services, the bank might allow you to keep your account. Please note, that banks generally have the right to terminate or freeze your account if your personal data is not up to date. It is therefore recommended that you update your contact details with your bank when you leave Germany.

How many years must I work in Germany to qualify for a pension?

To qualify for a German pension, your pension balance must hold at least 60 monthly contributions. Contributions are paid by you when you work as an employee.

Or, you can pay contributions voluntarily. In some cases, pension contributions are paid on your behalf if you receive unemployment benefits. Pension contributions can also be credited to your account if you are on maternity or paternity leave.  

The amount of pension you will receive depends on the amount and period of contribution. 

Can I claim a German Pension Refund Post-Brexit?

Whether you can claim a refund after Brexit depends on when you started to contribute to the pension systems in the UK and EU. If you live in the UK and you contributed to the UK or EU pension system before Brexit, you cannot claim a refund because you cannot pay voluntary contributions while residing in the UK. However, if you started making contributions after Brexit, you can claim a refund. If you are a UK national but live outside of the UK, the same rules apply.

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Our streamlined process is easy, fast, and secure. It takes less than 5 minutes to get started, and your claim will be processed in around 8 weeks.

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