Huthmacher Consulting GmbH

Bornheim – November 04, 2026 -- German employers that limit their company pension plans to the statutory 15% employer subsidy offer staff no edge over competing employers, according to consultant Reiner Huthmacher of Huthmacher Consulting GmbH. He identifies five design errors that blunt the retention effect of occupational pensions (bAV).

Minimum subsidy of 15% creates no competitive advantage

Employers must add 15% to employee salary conversions under certain conditions, namely when the company saves social security contributions through the conversion. Collective agreements may deviate from this rule. A voluntary subsidy of 25%, for example, can create a stronger incentive. Part of the cost may be offset by saved employer social security contributions, with the amount depending on salary and plan design, so companies should calculate what is economically viable.

Bornheim – September 16, 2026 -- Germany's statutory pension contribution rate stands at 18.6% of gross salary, with policymakers discussing further increases in coming years that could leave employees with less net income despite unchanged gross pay. Germany's Council of Economic Experts (Sachverständigenrat) has separately warned of rising total social security contributions, compounding financial pressure on both workers and employers.

Consultant Reiner Huthmacher, founder of the Fachkräftemagnet brand and Huthmacher Consulting GmbH, argues that blanket salary increases are not the most economically viable response for mid-sized companies (KMU) facing this squeeze.