Summer agreement 2025: road to a flexible labour market and sustainable pension system

Greater flexibility in the labour market

To raise the employment rate to 80% and make it easier for employers to recruit staff, existing labour regulations will be relaxed.

Night work: no more general ban

The general ban on night work will be abolished. In e-commerce and logistics, only work between midnight and 5 a.m. will still be considered night work. For work between 8 p.m. and midnight, and between 5 and 6 a.m., limited bonuses will apply, provided the work is directly connected to a night shift. This measure applies only to new employment contracts.

More voluntary overtime

The government is expanding the system of voluntary overtime. The annual maximum increases to 360 hours, of which 240 will be tax-exempt. In the hospitality sector, the limit will rise to 450 hours, with 360 hours exempt from tax. This reform aims to offer employers more flexibility and reward employees who are willing to work additional hours with higher net pay.

Threshold for part-time work eliminated

The current requirement to offer at least one-third of a full-time position for part-time jobs will be abolished. This allows employers to offer more tailored contracts to suit the needs of their organisation. At the same time, the goal is to reduce undeclared work in smaller jobs.

Maximum notice period on dismissal

As of 1 January 2026, the notice period upon dismissal will be capped at 52 weeks. This only applies to new contracts concluded after that date. Due to the long seniority build-up required, the effects of this measure will become noticeable only by 2043, when the first affected employees reach 17 years of service.

Easier access to end-of-career part-time work

So-called “landing jobs” allow employees to reduce their working hours toward the end of their careers. The required number of working years will be lowered, with the aim of helping women and older employees to better balance work and private life. Employers and trade unions had already reached an agreement on this reform in the National Labour Council.

Pension reform: focus on equality and incentives

Equal calculation for all employment categories

The pension calculation for civil servants will be aligned with that of employees and self-employed individuals: instead of using the final 10 years’ salary, the average of the last 45 years will be used. This change will be phased in gradually until 2062.

Uniform retirement age

Special schemes allowing retirement at age 55 or 56 (e.g. in the railways or defence sector) will be gradually phased out. By 2029, the statutory retirement age of 66 or 67 will apply to everyone.

Bonus-malus to encourage longer careers

• Bonus: Those who continue working beyond the statutory retirement age will be rewarded with a pension bonus. Starting in 2025, this bonus will amount to 2% per extra year worked, rising to 4% by 2030 and 5% by 2035.

• Malus: Those retiring early may see a limited pension reduction. This only applies to individuals with at least 42 years of service but who do not meet the threshold of 35 half-time career years.

  Employees who continue working until the legal retirement age will not face any loss.

Long-term illness and caregiving leave will continue to count as equivalent periods. This ensures that employees who are temporarily absent due to caregiving responsibilities are not penalised in their pension calculation.