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Pensions in Germany to increase on July 1

Pensions in Germany to increase on July 1

Pensions in Germany to increase on July 1

Good news for everyone who receives a pension in Germany: From July 1, 2020, pension benefits will go up, thanks to rising salaries and the strong labour market over the past few years. 

Pension benefits rising again in Germany

In July, pensions in Germany will go up once again, rising by 3,45 percent in West Germany and 4,2 percent in East Germany. For a standard pensioner (someone who earned an average income and made 45 years worth of contributions), this equates to 51,37 euros more per year in West Germany and 60,30 euros in East Germany. 

The increase is larger in the East in accordance with the terms of the East-West pension adjustment, which was legally agreed to in 2017 and aims to even out average pension values by 2024. The pension value in the East is currently equivalent to 97,2 percent of the value in the West. 

Increase made possible by strong labour market

According to the Federal Ministry of Labour and Social Affairs, this latest increase has been made possible by rising wages over the past year, as well as the development of social security contributions and the ratio of contributors to pensioners. 

Since the increase was already decided upon last month, the consequences of the coronavirus crisis on the German economy have not yet been taken into account - but ministers are firm that they will have no effect on the upcoming pension increase. 

Abi

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Abi Carter

Abi studied History & German at the University of Manchester. She has since worked as a writer, editor and content marketeer, but still has a soft spot for museums, castles...

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