European country turns to its retirees to tackle job shortages
The country where retirees could earn 2,000 euros a month tax-free
- Germany's government has approved a new draft law designed to tackle the nation's growing labour shortages.
- The proposed legislation will allow retirees to earn up to 2,000 euros (£1,700) per month tax-free, coming into effect at the beginning of 2026.
- The initiative aims to provide incentives for economic growth by encouraging older and experienced workers and skilled professionals to remain in employment.
- The measure is projected to cost the state approximately 890 million euros (£760 million) annually in lost tax revenues between 2026 and 2030.
- This move addresses a projected significant decline in Germany's working population and aligns with broader European efforts to reform pension systems and address worker shortages.