Employer-Sponsored Retirement Plans for Railroad Workers: The Guide
25. June 2026
2026 GDL Wage Agreement: What the 2.5% Pay Increase Means for Your Disability Insurance
31. July 2026
The EVG wage increase has been noticeable since this month: Anyone who works for Deutsche Bahn and is represented by the EVG has been receiving a higher paycheck since July 2026. For many, this is the first real pay raise since the last round of collective bargaining—and thus a good time to think about more than just your next vacation or purchase. Because it’s precisely at moments like these that you decide whether extra money disappears in the day-to-day or works for you in the long term, for example, in the form of retirement savings.
What the 2026 EVG Collective Bargaining Agreement Means in Practice
The Railway and Transport Union (EVG) and Deutsche Bahn reached an agreement in early 2025 on a multi-stage collective bargaining agreement covering approximately 192,000 employees. Overall, wages will increase by just over 6.5 percent in several stages. The first step takes effect now: As of July 2026, there will be a 2 percent increase. A year later, in July 2027, another 2.5 percent will follow, and starting in December 2027, a one-time payment of 2 percent will be added. In practical terms, this means that someone earning 3,200 euros gross will have about 64 euros gross more per month starting in July 2026—not a huge amount, but a noticeable sum when calculated over the course of a year.
The GDL has also reached its own collective bargaining agreement for its members: two across-the-board increases of 2.5 percent each, effective August 1, 2026, and August 1, 2027. Which increase applies to you depends on which collective bargaining agreement you are covered by.
How much you actually take home
Due to taxes and social security contributions, you never receive the full gross amount as net pay—roughly half to two-thirds, depending on your tax bracket and salary level. So, of the 64 euros gross mentioned above, you’ll realistically be left with about 35 to 40 euros net per month. That may not sound like much, but it adds up: Over ten years, and with the effects of interest, this “small amount” can become a substantial contribution to your retirement savings—provided the money isn’t simply spent from your checking account.
The pension gap at Deutsche Bahn — larger than many realize
For the average earner, the statutory pension replaces only a portion of their final net income—the so-called pension gap affects nearly all employees, including those at Deutsche Bahn. Those who work shifts often have more irregular contribution years as well, for example due to periods of training, parental leave, or health-related absences. That is precisely why it’s worth looking into additional retirement planning options—private retirement plans, employer-sponsored retirement plans, or a combination of both.
| Type of Pension Plan | Advantage | What to Look For |
|---|---|---|
| Employer-Sponsored Retirement Plans (bAV) | Tax and social security contribution benefits, often with an employer contribution | Lower pension in retirement is subject to taxes and social security contributions |
| Private Pension Insurance | Flexible, independent of your employer, with a freely selectable coverage amount | Compare terms and costs |
| Occupational Disability Coverage as a Supplement | Provides financial security in the event of loss of earning capacity | Particularly relevant for transportation services |
Three Ways to Make Good Use of the Increase
You don’t have to put the entire raise toward your retirement savings. Even a portion is enough if you consistently set it aside instead of letting it slip away in your day-to-day life.
1. Set up a standing order before the money becomes “normal”
The simplest trick: Right after you receive your first paycheck with a higher salary, set up a standing transfer for the net difference to a retirement account or pension plan. After one to two months, you’ll have gotten used to your new net salary “minus” that amount.
2. Top up existing occupational pension plans instead of setting up new ones
If you already have an employer-sponsored retirement plan, adding to it is usually less complicated than setting up a new plan—and you’ll continue to benefit from the tax and social security advantages.
3. Think about disability insurance—don’t just focus on saving
Retirement planning without income protection is only half the battle: Anyone who works in the transportation industry and loses their ability to work needs, above all, a disability income benefit that matches their current salary. Part of the raise can be used specifically to adjust their disability coverage.
After getting a raise, many people automatically adjust their living expenses—a new subscription, a bigger car, eating out more often. The raise is then spent on everyday expenses without anything changing in the long run.
Company Pension Plans at DB — The Underrated Lever
Many DB employees have only a superficial understanding of their options for a company pension plan. The basic idea is that a portion of their gross salary is converted into a pension plan before taxes and social security contributions are deducted (salary conversion). This reduces deductions in the short term while simultaneously building up capital for the future. The catch: In retirement, the pension paid out from the company pension plan is subject to taxes and social security contributions again, and those who set their contributions too high will have less take-home pay in the short term. Independent advice helps you find the right balance between occupational pension plans, private retirement savings, and current liquidity—and that’s exactly what we offer at Bahnversicherer, a DEVK agency focused on the rail industry.
Once a year—ideally right after a pay raise—have someone walk you through your entire retirement planning situation: statutory pension, employer-sponsored pension, private retirement savings, and disability insurance, all in one overview. That way, you’ll immediately see where there are any gaps.
What if the money does disappear in everyday life?
Not everyone can or wants to put the entire raise toward retirement savings—rising rents, energy costs, and everyday expenses are very real. If you don’t have any wiggle room right now, that’s no reason to put the issue on hold entirely. Even a small but consistent amount—say, 20 euros a month—establishes a routine that you can increase later, once your financial situation improves further, such as with the next rate tier in the summer of 2027.
Frequently Asked Questions
Who is eligible for the EVG rate increase?
It affects the approximately 192,000 employees covered by the EVG collective bargaining agreement with Deutsche Bahn. Train drivers represented by the GDL will receive the separate GDL wage increase.
Do I have to put the raise toward my retirement savings right away?
No. It makes sense, but it doesn’t have to be the entire amount. What’s important is making a conscious decision rather than consuming automatically.
Which is better: an employer-sponsored retirement plan or a private pension plan?
That depends on your salary, your tax bracket, and your financial planning. Often, a combination of both makes sense—a personalized calculation will show you what works best for you.
What does occupational disability have to do with retirement planning?
Any retirement plan is only as secure as your income. If you are unable to work due to illness or the loss of your ability to drive, you’ll often receive only a small statutory disability pension without occupational disability coverage—and your retirement plans will be thrown into disarray.
The German Pension Insurance Agency also provides general information on the pension gap and retirement planning.
Make sure your retirement savings plan aligns with your pay raise
We’ll show you, free of charge and with no obligation, exactly how large your pension gap is—and how you can make the most of the EVG rate increase.
Insurance Expert · Railway Insurer / AWT Finanz GmbH · Berlin
Laura advises DB employees and independent train engineers on retirement planning, disability insurance, and coverage related to their day-to-day work on the railroad.
