Statutory Disability Pension (Erwerbsminderungsrente)

Concept

The statutory disability pension (Erwerbsminderungsrente) is a benefit of Germany’s statutory pension insurance paid when an insured person, due to illness or disability, is no longer able to work at least six hours per day under the usual conditions of the general labor market.

Partial and Full Reduction in Earning Capacity

The law distinguishes between partial reduction in earning capacity, where the insured can still work between three and under six hours per day, and full reduction in earning capacity, where remaining capacity to work is under three hours per day; the amount of the pension depends on the degree of reduction in earning capacity and the pension entitlements accrued up to that point.

Distinction from Private Disability Income Insurance

Unlike private disability income insurance, which is based on the specific occupation last practiced, the statutory disability pension assesses abstract capacity to work on the general labor market regardless of the insured’s previous occupation; because the benefit level of the statutory disability pension is often insufficient in practice to maintain the insured’s standard of living, taking out supplementary private disability income insurance is regularly recommended.