The low-earner bonus in the Altersvorsorgedepot: amount & rules
Published on · Updated on · Managing Director & Partner, Alsterspree Verlag GmbH
The short answer: no separate low-earner bonus in the law
The Altersvorsorgereformgesetz promulgated on 29 May 2026 contains no low-earner bonus. The final version settled by the Bundestag's finance committee has exactly three allowance components: the contribution-proportional basic allowance of 50 percent on own contributions up to 360 euros and 25 percent on contributions up to 1,800 euros (together at most 540 euros a year), the child allowance of one euro per euro paid in up to 300 euros per child, and the one-off career-starter bonus of 200 euros for signing up before your 25th birthday. The law provides for no income-dependent special allowance.[2][1]
Where the 175 euros come from: the 2024 reform draft
Even so, the figure of 175 euros still haunts many guides. It comes from the draft of the pAV reform act of 2024: that draft provided for a low-earner bonus of 175 euros a year below an income limit of 26,250 euros. It was never passed and lapsed at the end of the parliamentary term. The bonus was not carried over into the new legislative process that began with the ministerial draft in December 2025. Anyone still planning around the 175 euros today is counting on a subsidy that does not exist.[4]
How the Altersvorsorgedepot actually supports low earners
In the new subsidy model, savers on small incomes do not actually need a special bonus, because the basic allowance tiers are deliberately built so that the very first amounts saved attract the highest subsidy: for every euro up to 360 euros of own contributions, the state adds 50 cents on top. That means precisely the contributions that savers on low incomes can afford reach the highest subsidy rate in the entire system.[1]
| Subsidy component | Rule in the law | Maximum per year |
|---|---|---|
| Basic allowance | 50% on own contributions up to €360, 25% on €360.01 to €1,800 | €540 |
| Child allowance | €1 of allowance per €1 of own contributions, up to €300 per child | €300 per child |
| Career-starter bonus | One-off, for signing the contract before your 25th birthday | €200 (one-off) |
For comparison: the government draft of December 2025 still provided for a flatter model of 30 cents per euro and a maximum basic allowance of 480 euros. The finance committee replaced it with today's percentage tiers, improving the subsidy on small contributions once again considerably.[5]
Minimum own contribution: just 120 euros a year is enough
The entry hurdle is low: anyone who pays in at least 120 euros a year, i.e. 10 euros a month, qualifies for allowances. On 120 euros of own contributions, 60 euros of basic allowance flow into the account, a subsidy rate of 50 percent. The maximum basic allowance of 540 euros goes to those who pay in 1,800 euros a year. An income limit like the 26,250 euros of the old draft does not exist in the final version: eligibility depends on the group you belong to, such as compulsory pension insurance, not on the level of your income.[3]
The 175 euros that do exist: indirectly eligible spouses
In exactly one place the final law does contain an amount of 175 euros, and it is regularly confused with the scrapped bonus: spouses without their own entitlement, known as indirectly eligible spouses, can be subsidised through their partner's contract. Their allowance is capped at a maximum of 175 euros a year. That is not a low-earner subsidy but an upper limit on derived entitlements.[2]
Worked examples: subsidy on small contributions
| Scenario | Own contribution per year | Basic allowance | Child allowance (1 child) | Total subsidy | Subsidy rate |
|---|---|---|---|---|---|
| €10 a month, no child | €120 | €60 | €0 | €60 | 50% |
| €30 a month, no child | €360 | €180 | €0 | €180 | 50% |
| €30 a month, 1 child | €360 | €180 | €300 | €480 | 133% |
The examples show why the scrapped bonus leaves hardly any gap: even without a child, the subsidy rate on small contributions is a constant 50 percent. With one child, the state subsidy of 480 euros clearly exceeds the own contribution of 360 euros. Whether the account pays off in an individual case therefore depends less on income than on the contribution level and family situation.
Häufig gestellte Fragen
- Is there a 175-euro low-earner bonus in the Altersvorsorgedepot?
- No. The Altersvorsorgereformgesetz promulgated on 29 May 2026 contains no low-earner bonus. The final version only has the basic allowance, the child allowance and the one-off career-starter bonus of 200 euros.
- Does the income limit of 26,250 euros apply?
- No. The 26,250-euro limit belonged to the bonus in the 2024 reform draft. The final version has no income-dependent allowance; eligibility depends on the group you belong to, not on your income.
- How are low earners supported instead?
- Through the basic-allowance tiers: a 50 percent allowance on the first 360 euros of own contributions, 25 percent up to 1,800 euros, plus the child allowance of up to 300 euros per child. Just 120 euros of annual contributions are enough to qualify.
- Could the low-earner bonus still be introduced later?
- That would require a new legislative process. It is not part of the promulgated law, and no such amendment is currently part of any ongoing procedure.
- What are the 175 euros that do appear in the law?
- That is the allowance cap for indirectly eligible spouses, i.e. partners without their own entitlement. This upper limit has nothing to do with a bonus for low earners.
Sources
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