Reduced earning capacity pension and basic income support: what the law regulates

Legal status: 10.10.2026 (German federal law, checked against the statutory text). Not legal advice; requirements and amounts in the individual case are clarified by the pension insurance, the social welfare office and advice centres. Legal terms are translated here for understanding; the German wording of the law is what counts. This article describes the legal situation in Germany.

What “reduced earning capacity” means

Insured people are partially incapacitated for work if, because of illness or disability, they are unable for an unforeseeable time to work at least six hours a day under the usual conditions of the general labour market. Insured people are fully incapacitated for work if they cannot work at least three hours a day. Also fully incapacitated are certain employees in workshops for disabled people who, because of the type or severity of the disability, cannot work in the general labour market, as well as insured people who were already fully incapacitated before the general qualifying period was met, during a period of unsuccessful integration into the general labour market. ^{[3, paras 1, 2]} Not incapacitated for work is anyone who can work at least six hours a day under the usual conditions of the general labour market; the labour market situation is not taken into account. ^{[3, para. 3]} More on benefits for participation in working life: Benefits for participation in working life: what SGB IX provides.

Requirements for the pension

Entitlement to a pension for partial or full reduction in earning capacity exists up to the standard retirement age if three conditions are met: reduced earning capacity, three years of compulsory contributions for insured employment or activity in the last five years before the onset of reduced earning capacity, and meeting the general qualifying period before onset. ^{[3, paras 1, 2]} The general qualifying period is five years. ^{[4, para. 1]} The five-year period is extended, among other things, by credited periods, periods of consideration and periods of school education after the 17th year of life up to seven years. ^{[3, para. 4]} The three years of compulsory contributions are not required if the reduced earning capacity has occurred due to a circumstance by which the qualifying period is met early. ^{[3, para. 5]} Anyone who works alongside the pension and thereby exceeds the underlying performance capacity keeps the pension for as a rule six months. ^{[3, para. 7]}

Qualifying period of 20 years

Insured people who were already fully incapacitated for work before the general qualifying period was met and have been continuously fully incapacitated since then are entitled to a pension for full reduction in earning capacity if they have met the qualifying period of 20 years. ^{[3, para. 6]} The 20-year qualifying period is a requirement for the entitlement if the general qualifying period was not met before the onset of full reduction in earning capacity. ^{[4, para. 2]} What counts among the periods credited for the qualifying period, the editorial team has not presented.

Pension for a limited period

Pensions for reduced earning capacity are, as a rule, paid for a limited period. The time limit is set for at most three years after the start of the pension and can be extended, each time for at most three years. ^[5] A pension to which there is an entitlement irrespective of the labour market situation is paid without a time limit if it is unlikely that the reduction in earning capacity can be remedied; this is to be assumed after a total duration of time limits of nine years. ^[5]

Basic income support in case of permanent full reduction in earning capacity

Under section 41 SGB XII, people are entitled to benefits who cannot, or cannot sufficiently, cover their necessary living costs from income and assets and who meet the requirements, for example have reached the age limit or are permanently fully incapacitated for work. ^{[1, paras 1, 2]} For reduced earning capacity the following applies: the person has completed the 18th year of life, is, regardless of the labour market situation, fully incapacitated for work within the meaning of section 43 para. 2 SGB VI, and it is unlikely that the full reduction in earning capacity can be remedied. ^{[1, para. 3]} From 18, people are also entitled for as long as they go through the entry procedure and the vocational training area in a workshop for disabled people or with another provider, or have a training relationship with a budget for training. ^{[1, para. 3a]} Anyone who has intentionally or grossly negligently brought about the need for help in the last ten years has no entitlement. ^{[1, para. 4]} For the use of income and assets, special rules apply, also for the income and assets of the spouse, life partner or partner in a quasi-marital relationship, as far as they exceed that person’s necessary living costs. ^{[2, para. 1]} How high the benefit is and which allowances apply, the editorial team has not presented.

What this can mean for people on the spectrum

The law links to performance capacity in working life, not to a diagnosis. An autism diagnosis therefore does not by itself mean that there is reduced earning capacity, and conversely reduced earning capacity can exist without a diagnosis. Note: this is a classification by the editorial team from the wording of the law. Whether and to what extent you can work is checked by the pension insurance in the individual case; expert opinions and findings play a role there. Note: the editorial team has not checked the procedure. Support at work (work assistance, reasonable adjustments, integration assistance) can affect performance capacity: Benefits for participation in working life: what SGB IX provides, Severe disability at work: rights, protection against dismissal and equivalent status, Work and career.

What else you should know

• Order of help: Whether participation benefits are checked before a pension, the editorial team has not presented here.
• Advice and applications: Finding independent advice: what the EUTB does, Applying and filing an objection, Understanding the support system: who is responsible for what?.
• Severe disability: The severe disability card is not a pension: Severe disability card and degree of disability for autism.

Sources and literature

1. § 41 SGB XII – Leistungsberechtigte (Grundsicherung im Alter und bei Erwerbsminderung). https://www.gesetze-im-internet.de/sgb_12/__41.html – Statute (German federal law, in German)
2. § 43 SGB XII – Einsatz von Einkommen und Vermögen. https://www.gesetze-im-internet.de/sgb_12/__43.html – Statute (German federal law, in German)
3. § 43 SGB VI – Rente wegen Erwerbsminderung. https://www.gesetze-im-internet.de/sgb_6/__43.html – Statute (German federal law, in German)
4. § 50 SGB VI – Wartezeiten. https://www.gesetze-im-internet.de/sgb_6/__50.html – Statute (German federal law, in German)
5. § 102 SGB VI – Beginn und Ende von Renten, Befristung (www.gesetze-im-internet.de/sgb_6/__102.html) – Statute (German federal law, in German)