The approximately 21 million pensioners in Germany will receive a substantial increase in their payments as of July 1st. In the west, pensions will increase by 5.35 percent with the resolution of the pension adjustment law in the Bundestag, in the east by 6.12 percent.
Significant plus for July 1: The Bundestag decided on Friday this year’s pension increase. According to this, the retirement benefits will increase by 5.35 percent in western Germany and by 6.12 percent in eastern Germany in just under a month.
The rise in pensions would actually have been even higher due to the significant increase in wages in 2021 – but this is prevented by the so-called catch-up factor. It ensures that pensions remain stable even if there should have been a mathematical reduction, like in 2021. As a result, upcoming increases will be lower thereafter. There are also other corrections to the pension calculation that are intended to dampen strong fluctuations.
Improvements in disability pensions were also decided on Friday. The three million recipients of this service are to receive up to 7.5 percent more money from 2024. There is also a flat-rate surcharge for certain groups.
Also read: From July 1st – pension increase decided: The 6 most important questions and answers