The statutory retirement age in Germany is set to increase from 65 to 67 years of age. The change will be phased in gradually: the retirement age will increase by one month per year from 2012 and by two months per year between 2024 and 2029. An exception will be made for anyone who has already made social security contributions for 45 years or more. The German Government will also be taking measures to promote the employment of older workers. There will be wage subsidies for older workers who are prepared to accept jobs paying less than their previous employment and bonuses for employers who take on older workers for at least one year. In light of these changes employers should review their employment contracts and any existing works agreements and collective bargaining arrangements.