Making the most of flexible working time models – with partial retirement and working time accounts for employers

Flexible working time models such as partial retirement (ATZ) or working time accounts (ZWK) are suitable for all permanent employees - regardless of age or working hours. They are particularly relevant for employees with individual life phase needs, such as sabbaticals, care leave or further training plans. Older employees also benefit, as ZWK and ATZ enable a smooth and predictable transition to retirement. These models not only increase flexibility, but also the emotional bond with your company.

Partial retirement (ATZ) reduces working hours in the final phase of life - usually in a block model (working and release phase). The salary is topped up by the employer. Time value accounts (ZWK), on the other hand, function like a credit balance into which employees contribute service or company agreements in order to use them flexibly for time off later - e.g. for sabbaticals, further training, care leave or earlier retirement. Both models can complement each other, but differ in terms of flexibility and financing logic.

A working time account is a flexible working time model in which your employees can save part of their salary, overtime or holiday days as a credit balance. These reserves can later be used for sabbaticals, care leave or early retirement. The credit balances are protected against insolvency and are tax-privileged.

The cost structure depends on the model chosen. In the case of the time value of money account, the amounts contributed usually come from the employee's salary or overtime. The employer only pays the social security contributions on these amounts. Costs may be incurred for account management or insolvency insurance. In the case of partial retirement, the law stipulates that the employer tops up the reduced salary and pension insurance contributions on a pro rata basis. However, with the right advice, these models can be organised efficiently - including through tax benefits and possible subsidies.

Time value accounts are subject to insolvency protection - this means that employees' credit balances must be protected against the employer's insolvency, e.g. via trust solutions or pledging the claims to the employee. Partial retirement is subject to clear legal requirements regarding salary top-ups and pension contributions. Both models should be regulated in a service or works agreement and legally reviewed - we will provide you with comprehensive support.

No, flexible working time models such as ZWK or ATZ are voluntary offers. However, they can become mandatory through collective labour agreements or company agreements. For many companies today, they are a strategic means of sensibly combining modern working time models, employee retention and HR flexibility - without any legal obligation, but with significant benefits.

Today, administration can be digitalised to a large extent. We offer modern platform solutions that take the burden off HR departments, from contract management and employee portals to annual reporting. At the same time, we reliably ensure that legal requirements - such as documentation, reporting and insolvency protection - are met. The result: maximum transparency, minimum burden for your HR team.

Companies that offer flexible working time models strengthen their employer brand, improve employee loyalty and create flexible transitions - especially for older employees. At the same time, working time accounts enable strategic personnel planning. The organisational effort is low thanks to digital solutions. They show care, promote work-life balance and thus secure a competitive advantage over other employers.

In the event of a change of employer, the credit balance can be transferred to the new employer or - under certain conditions - to Deutsche Rentenversicherung Bund. Alternatively, it is paid out after deduction of taxes and social security contributions.