As a citizen of India who has experienced working in Germany, familiarizing yourself with the criteria for obtaining a pension refund is essential. Your payments into the German pension system are a significant element of the country’s social welfare framework. However, navigating the process to reclaim these contributions upon leaving Germany, especially understanding the requirements for nationals of India, can appear daunting.
This article delves into the crucial details concerning eligibility for a Refund of German Pension Contributions for citizens of India.
Whether you’re contemplating requesting a refund of your German pension or seeking to understand the social security arrangements between Germany and India better, this guide aims to offer clear insights and guidance to assist you in making informed decisions about your financial future after departing from Germany.
German pension refund entitlement for citizens of India
As a foreigner living and working in Germany, you contribute approximately 9% of your monthly taxable income to the Deutsche Rentenversicherung, which is the official pension insurance system in Germany. It’s vital to understand that this contribution is a shared responsibility, with your employer matching your payments into the social security system.
So what happens when you stop working in Germany and leave? Can they be claimed back?
The Social Security Code (§210 SGB VI) and the Social Security Agreement between Germany and India set out the guidelines for claiming a refund of your pension contributions from the German pension insurance scheme. This agreement, which sets out the eligibility criteria and the procedure for applying for a refund of your contributions, is tailored to the needs of nationals of India.
Understanding the procedure for claiming a refund of your German pension contributions is key as you plan for your future post-Germany. As a citizen of India, you may be eligible for a refund, provided you fulfill certain conditions.| When planning your future after leaving Germany, it is important to understand the procedure for claiming a refund of your German pension contributions. As a citizen of India, you may be entitled to a refund if you meet certain conditions.}
Eligibility for pension refund: General criteria
When you leave Germany, you generally become eligible for a refund of your German pension contributions if:
a) you are ineligible to make voluntary contributions to the German pension system (voluntary insurance/freiwillige Versicherung) from your new place of residence.
and
b) at least 24 months have passed since your most recent contribution to Germany’s statutory pension scheme.
The option to make voluntary insurance payments (a) depends on the social security agreement between Germany and your home country.
Generally speaking, you are not entitled to get your German Pension Contributions refunded if
a) You are entitled to or are already receiving a German pension.
b) You can make statutory pension contributions or are covered by compulsory insurance in Germany.
c) You have the option of making voluntary contributions to the German pension scheme (voluntary insurance).
In short: The entitlement to a German pension refund for nationals of India
As a citizen of India, you are only entitled to a refund of your German pension contributions if your employment in Germany lasted less than 5 years (i.e. you paid pension contributions in Germany for a maximum of 59 months) and at least 24 months have elapsed since your last pension contribution in Germany.
Intergovernmental Social Security Agreements
The exchange of social security benefits between the two countries is governed by bilateral agreements between Germany and India.
In particular, these agreements state that as a citizen of India who is resident for tax purposes in Germany, you are entitled to a German old-age pension after a contribution period of 60 months.
With regard to voluntary contributions to the German pension insurance scheme, the Social Security Agreement stipulates that if you are resident in the EU or the UK, you will be given the option of continuing to make contributions to qualify for a statutory pension in Germany.
In addition, if you have already paid contributions for at least 60 months, you can continue to pay into the German pension system from anywhere in the world.
This means that if you live in the EU/UK, or if you have paid into the German pension system for at least 60 months, you will not be eligible for a Refund of German Pension Contributions. This is because you are entitled to a German pension and the agreement allows you to make voluntary contributions even if you do not benefit directly from them.
If you do not meet the pension eligibility criteria and live outside the EU or UK, you may be eligible for a pension refund 24 months after your last contribution.
Use our free eligibility check to claim your Refund of German Pension Contributions
When navigating the terrain of German pension refunds, it becomes clear that processing times can vary considerably. They can often stretch from several months to more than six months. For those seeking a quicker process, specialized services offer an accelerated route.
In addition, Refund of German Pension Contributions is made easy through our online tool in the form of a free eligibility check. These tools are designed to seamlessly assess your eligibility for a Refund of German Pension Contributions and estimate the potential refund amount. The pension check ensures a transparent and straightforward process for checking your pension insurance records with the German Pension Fund and initiating a Refund of German Pension Contributions.