Workers in Germany who work after retirement can earn up to 2,000 euros per month tax-free, to combat the labor shortage.

The German government, led by Chancellor Friedrich Merz, will allow retirees to earn up to 2,000 euros per month without paying taxes, as part of a plan to stimulate the workforce. The measure, estimated to cost 890 million euros annually, aims to combat the shortage of skilled workers in the context of an aging population. The initiative is part of a broader set of reforms to revitalize the German economy. It is also expected that the tax incentives will retain experience in companies and support health and pension systems.