Career-break cost (Erwerbsunterbrechung)
Career-break cost is the long-term difference between continuing a career and reducing or stopping paid work. It includes foregone net pay, later salary growth, statutory and occupational pension accrual, employer benefits, and investment capacity. German Kindererziehungszeiten (child-raising periods) soften statutory-pension loss, but they do not replace the whole economic effect [1].
Build the cost in layers
| Layer | What can be lost or gained |
|---|---|
| Current cash flow | Net pay minus childcare, commuting, and work costs |
| Future earnings | Promotions, experience, wage growth, and re-entry effects |
| Statutory pension | Earnings-based points, partly offset by credited periods |
| Occupational pension | Employer contributions, matching, and service-based rights |
| Private capital | Contributions and returns that no longer compound |
| Household resilience | Care capacity, health, time, and reduced external costs |
The correct comparison is between complete household scenarios, not one gross salary versus childcare fees.
Worked ten-year example
Assume a two-year break reduces net employment income by €2,200 per month. Direct foregone net pay is 24 × €2,200 = €52,800. If re-entry pay is then €300 per month below the continuation path for eight years, that adds 96 × €300 = €28,800.
The simplified ten-year earnings difference is €81,600 before pension, employer benefits, childcare savings, tax interactions, and investment returns. This is not a prediction; it shows why the break's cost extends beyond its duration.
German child-raising credits
For a child born in 1992 or later, up to 36 months of Kindererziehungszeit can generally be credited to one parent. One year is valued at roughly one Entgeltpunkt, subject to statutory rules and caps [1]. Berücksichtigungszeiten can also matter until the child's tenth birthday.
These credits protect part of pillar 1. They do not recreate lost salary progression, occupational-pension contributions, or private saving. Parents also need to verify which pension account receives the credit; relevant periods are not always recorded automatically [2].
Check yourself
A two-year break reduces net pay by €2,200 monthly. What is direct foregone net pay?
Re-entry pay is €300 monthly below the continuation path for eight years. What is that additional earnings difference?
Using both preceding amounts, what is the simplified ten-year earnings difference?
What do Kindererziehungszeiten replace?
Sources
- Deutsche Rentenversicherung — Kindererziehungszeiten, https://www.deutsche-rentenversicherung.de/KnappschaftBahnSee/DE/Aktuelles/Meldungen/2026/2026_03_25_kindererziehungszeiten.html (2026)
- Deutsche Rentenversicherung — Renteninformation and missing insurance periods, https://www.deutsche-rentenversicherung.de/DRV/DE/Ueber-uns-und-Presse/Presse/Meldungen/2025/250224-renteninformation-hilft-bei-altersvorsorge.html (2025)