German pension contributions: what the Australia–Germany agreement means for you

That big "RV" line on your German payslip isn't super, and it doesn't sit in an account with your name on it. But it isn't lost when you fly home either, thanks to a treaty most Australians in Berlin have never heard of.

The short version

• German pension insurance takes 18.6% of gross pay in 2026, split evenly between you and your employer, on earnings up to €101,400 a year [1][2].
• Australia and Germany have had a social security agreement since 1 January 2003, extended on 1 October 2008 to stop double contributions for seconded workers [3][4].
• Germany normally needs five years of contributions for a pension. Under the agreement, your Australian working years can count towards that minimum [5].
• Australians who leave Germany can sometimes get their own share of contributions refunded after waiting 24 months, but that wipes out every German pension right from that work [6][7].
• A German pension can be paid into your Australian bank account, and it counts as income for the Age Pension [5].

What goes to the Deutsche Rentenversicherung

Germany's state pension (gesetzliche Rentenversicherung) is a pay-as-you-go system run by the Deutsche Rentenversicherung (DRV). Today's workers pay for today's retirees, and in return you build up pension points based on your earnings relative to the national average. It's closer to a German version of a contributory Age Pension than to super.

Your first job triggers a social insurance number (Sozialversicherungsnummer), sent by letter from the DRV. Keep it. It's the key to your record, and you'll need it for any future claim from Australia.

How it compares with home

The difference from super is the whole point of this guide. Super is your money, invested in your name, and you can usually access it from your preservation age. German pension contributions buy entitlements, not a balance. There's nothing to roll over, no investment option to pick, and no way to transfer it into an Australian fund. What you get is a monthly pension later, or in some cases a refund now.

The Australia–Germany social security agreement

The original agreement was signed in Canberra in December 2000 and took effect on 1 January 2003 [3][4]. A supplementary agreement signed in February 2007 took effect on 1 October 2008 and added rules on double coverage [4].

Totalisation: making short careers count

Without the agreement, two years in Berlin would usually leave you short of Germany's five-year minimum. The agreement lets each country count periods from the other [3][5]:

• For a German pension: Your Australian working life residence (from age 16 to pension age) can count towards Germany's minimum period, as long as it doesn't overlap with German coverage. You need at least one actual German contribution.
• For an Australian pension: German coverage can be treated as Australian residence to meet the ten-year minimum for the Age Pension. To claim while living outside Australia, you need at least 12 months of real Australian working life residence, six of them continuous.

These deemed periods only help you qualify. They don't increase the amount. Germany pays for your German years; Australia pays based on your Australian residence, subject to its means tests [5].

Secondments: staying in super

If an Australian employer sends you to Berlin temporarily, the supplementary agreement can keep you in the Australian system [8]:

• Same employer: up to four years if you're an Australian resident and stay employed by the Australian company.
• Associated employer: up to five years when you're seconded to a related company in Germany; the application must be made within six months of starting work there.
• The paperwork: your employer applies to the ATO for a certificate of coverage, stating which article applies. It then keeps paying the Superannuation Guarantee in Australia, and the certificate exempts you and your employer from German pension contributions [8].

The agreement is about pensions. It isn't a health care agreement, and Australia has no reciprocal health care agreement with Germany, so you'll still need German health insurance.

Can you get your contributions back when you leave?

It is the big question when Australians leave Berlin. The honest answer: sometimes, and it's often not the best move.

German law allows a refund (Beitragserstattung) on application if you're no longer compulsorily insured and have no right to voluntary insurance [7]. For Australians, the conditions boil down to:

1. You've left German compulsory insurance, usually because you've moved away.
2. At least 24 calendar months have passed since that insurance ended, with no new compulsory insurance in between [6][7].
3. You have no right to insure voluntarily. This is the catch. Under the agreement, Australians living outside Germany can make voluntary contributions once they have 60 calendar months of contributions [3]. The DRV says a refund isn't possible if you've already paid for at least five years [6].
4. You apply to the DRV, which decides your case.

What you get back is generally only the contributions you paid yourself, not your employer's half. Self-employed or voluntary contributions come back at 50% [7]. The refund ends your insurance relationship completely, and you can't limit it to certain periods: every German pension right from that work disappears [7].

Refund or pension?

A useful first step: ask the DRV for a statement of your insurance record before deciding. The German pension is also adjusted over time, while a refund is a fixed number.

Claiming a German pension from Australia

When the time comes, you don't need to fly to Berlin. Centrelink acts as the liaison agency for German pension claims, free of charge [5]:

1. Lodge your claim at any Centrelink service centre using the bilingual forms, or with Centrelink International Services on 131 673.
2. Bring proof of identity and citizenship, such as your passport, plus your German social insurance number.
3. Centrelink forwards it to the DRV, which assesses your German record.
4. Payments arrive monthly in arrears into your Australian bank account [5]. German pensions are generally paid from three to four months before you lodge, if you were already entitled [5].

If you were once refused a German pension for too little coverage, you can ask Centrelink for a claim pack to have it reassessed under the agreement [5].

How it sits with super and the Age Pension

Super

Your super is untouched by German contributions. It keeps growing on its own and is accessed under Australian rules. If you're working in Berlin for a German employer, nothing goes into super unless you add it yourself. Our guide on super while living overseas covers fees, insurance and lost accounts.

The Age Pension

A German pension doesn't usually stop you getting the Age Pension, but it reduces it. Living in Australia, it counts as income under the normal income test. If you were granted an Australian pension only thanks to the agreement, it's reduced dollar for dollar by your German pension [5]. If you retire outside Australia, the Age Pension is proportional to your Australian working life residence, with 35 years giving the full rate [5]. See Centrelink and the Age Pension abroad.

Tax on the pension

Under the Australia–Germany tax treaty, social security pensions first paid from 2017 can be taxed by the paying country at no more than 15% of the gross amount, with your country of residence taxing the rest and giving relief [9]. Germany may also tax certain other pensions if contributions were tax-favoured there for more than 15 years [9].

Comparing notes on DRV letters? Cooee Germany, our Facebook group for Australians in Germany, has members who've claimed, refunded and totalised.

Sources

1. Sozialversicherungsrechengrößen 2026 – Deutsche Rentenversicherung
2. Beitragssätze in der allgemeinen Rentenversicherung 2026 – gesetze-im-internet.de (Federal Ministry of Justice)
3. Social Security Agreement between Australia and Germany – Department of Social Services
4. History of the Agreement with Germany – Social Security Guide, Department of Social Services
5. Social Security Agreement between Australia and Germany: FAQ – Department of Social Services
6. Erstattung der deutschen Versicherungsbeiträge – Deutsche Rentenversicherung
7. § 210 SGB VI Beitragserstattung – gesetze-im-internet.de
8. Bilateral social security agreements – Australian Taxation Office
9. Australia–Germany double taxation agreement, full text – The Treasury

Keep reading

• German income tax for Australians: tax classes and your first return
• Freelancing in Berlin: the freelance visa, Finanzamt and VAT
• Super while living overseas
• Centrelink and the Age Pension abroad