If a patient is no longer able to work due to an illness, such as a chronic illness such as Long Covid, Chronic Fatigue Syndrome (ME/CFS), Multiple Sclerosis, Cancer, Rheumatoid Arthritis, Fibromyalgia, or others, the disability pension is a way to compensate for the loss of earnings. In this article, you can find out what a disability pension is and what requirements must be met.

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What is a disability pension?

The disability pension is a form of pension that is paid in Germany when someone is no longer able to work or is only able to work to a limited extent due to health restrictions. It provides basic security and provides financial support for people who are no longer able to earn a living from their own employment due to illness or disability.

A claim to a disability pension may arise in the event of disability. A distinction must be made between occupational disability:
Occupational disability exists when the profession can no longer be carried out due to illness or disability. According to an individual assessment, occupational disability insurance applies here, provided that it has been taken out privately. Occupational disability insurance is one of the private supplementary insurance policies.
Disability exists when a patient is permanently unable to work at all for more than three hours a day, i.e. is unable to generate an independent income. Here, a disability limit can create financial security.

A distinction is made between a partial and full disability pension:

• Full disability pension
  If an insured person cannot work for more than three hours a day due to illness or disability, a full disability pension can be paid out.
• Partial disability pension
  If an insured person can work between three and six hours a day, a pro rata disability pension is paid out.

There are different rules for insured persons born before 01.01.1961: They receive a disability pension if they can work in the profession they have learned or equivalent for less than six hours per day.

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Requirements for a disability pension

The provider of the statutory disability pension is the German Pension Insurance. In order to receive a disability pension, you must therefore

• be insured under statutory insurance for at least five years (minimum insurance period, general waiting period). The period that directly precedes the onset of disability applies here.
• have paid mandatory contributions for at least three years

In addition, you must not yet have reached the standard age limit for the old-age pension.

From a medical point of view, a number of basic requirements must also be met:

• Employment cannot be restored even through rehab measures
• A medical necessity of incapacity for work was confirmed by an expert opinion.

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How is entitlement to a disability pension assessed?

As a provider of the disability pension, the German Pension Insurance checks whether the requirements have been met. To assess the medical admission criteria, pension insurance will request a report from your doctor. The necessary report is prepared by the Social Health Service.

If the report was prepared before a rehabilitation measure, a rehab report can replace this report. Pension insurance usually re-checks whether earning capacity can be restored through medical or vocational rehabilitation.

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How much is the disability pension and for how long is it paid out?

The amount of the disability pension depends on individual insurance contributions and the number of insurance years. The disability pension may vary from case to case. The duration of the pension payment is usually limited to a maximum of three years and must be extended if further incapacity to work.

In principle, the disability pension is calculated by multiplying the personal pay points by the pension factor and the current value of the pension:

Pay points

The amount of pay points is the ratio of the insured person's income to the average income of all insured persons.
The average pension insurance salary for 2023 is 43,124 euros and corresponds to 1.0 pay points. If your income is higher, your pay points also increase. If your income is lower, your pay points also fall.

pension factor

The pension factor is a fixed factor and determines the level of protection within the framework of the pension type. The old-age pension has a factor of 1.0, as does the full disability pension. Pensions due to partial disability have a pension factor of 0.5.

Current pension value

The current pension value is reset annually and corresponds to the monthly, unreduced pension that an average earner would receive. From 1.7.2023 to 30.06.2024, the current pension value in Germany is 37.60 euros.

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However, if a partial disability pension is not enough, those affected can earn something extra. However, the annual additional income is subject to maximum limits and may influence the amount of the disability pension.

The German Pension Insurance has provided further, detailed information on its websites. Information addresses the specific diseases and provides structural assistance as to which steps you can take. In case of uncertainty, consultations can also be arranged.