EU parental leave counts towards pension

The BSG ruled: Child-raising periods in Austria increase the German standard old-age pension - otherwise the freedom of movement within the EU would be violated.
Published by Patricia Lederer 09.05.2025 um 08:00 Uhr

BSG: Child-raising periods in Austria increase German standard old-age pension

In its ruling of 27.03.2025 (Ref. B 5 R 16/23 R), the Federal Social Court (BSG) decided that periods of child-rearing completed in Austria must be taken into account when calculating the German standard old-age pension. The claimant had paid compulsory contributions to the statutory pension insurance scheme in Germany before moving to Austria and later made a voluntary contribution after her return.

Point of contention: Consideration of foreign child-raising periods

The claimant demanded a higher standard old-age pension from the German Federal Pension Insurance, taking into account the child-raising periods completed in Austria. The defendant rejected this. The claimant was now successful in the appeal.

BSG: Interpretation of § 56 SGB VI in conformity with European law

According to the court, the obligation to take Austrian child-raising periods into account results from an extended interpretation of Section 56 SGB VI in line with European law. According to this, child-raising periods spent in other EU countries are to be treated as if they had been completed in Germany.

Basis: EU freedom of movement

The Federal Social Court emphasized that the claimant should not be disadvantaged simply because she exercised her right to freedom of movement within the European Union. If the child-raising periods in Austria had not been taken into account when calculating the pension, this would have led to a disadvantage compared to people who have spent their entire working life exclusively in Germany. Such unequal treatment would not be compatible with the ban on discrimination in EU law. Therefore, periods completed in other EU countries must be treated as if they had been completed in Germany.

(BSG, judgment of. 27.3.2025 – B 5 R 16/23 R, not yet published; according to the date report)

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Patricia Lederer
Author and managing director of PepperPapers

Patricia Lederer is a specialist lawyer for tax law, commercial and corporate law. Lederer specializes in national and international tax law and criminal tax law. She works in the areas of tax audits, tax investigations and represents clients in court proceedings before the tax courts nationwide, the Federal Fiscal Court, the Federal Constitutional Court and the European Court of Human Rights.
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