The approximately 21 million pensioners will receive more money as planned from July 1st. The federal cabinet decided on Wednesday in Berlin to increase pensions by 4.39 percent in the west and 5.86 percent in the east, the German press agency learned from government circles. Federal Minister of Social Affairs Hubertus Heil (SPD) had already published the figures in March.
In addition to the pension increase, almost 33 years after German reunification, the pension values in East and West are also being adjusted, one year earlier than planned. The ordinance passed by the cabinet still has to be approved by the Bundesrat, but this is a formality. The Bundestag does not have to agree.
Pensions usually increase on July 1 of each year. They are based on wage developments in the country. When wages fall, however, a so-called pension guarantee also prevents retirement. In the worst case, there will be zero rounds, like two years ago in the wake of Corona or in 2010 after the financial crisis.
As a result of the increase, a monthly pension of 1000 euros, which is based only on western contributions, increases by around 44 euros, an equally high pension with eastern contributions by almost 60 euros. The fact that pensions in the east are rising more than in the west is due to the so-called adjustment staircase: by 2024, the pension value in the east should be gradually adjusted to that in the west, and this will already be achieved this year.