Pension increase as of July 1, 2025: Plus 3.74% for millions of retirees

On April 30, 2025, the Federal Cabinet adopted the Pension Value Determination Ordinance 2025. It provides for a 3.74% increase in statutory pensions as of July 1, 2025 - subject to the approval of the Bundesrat.

This adjustment will ensure that pensioners continue to participate in the positive wage development in Germany. Pensions will thus rise from the current 39.32 euros to 40.79 euros per earnings point. For a standard pension after 45 years of contributions on an average income, this means a monthly increase of around 66 euros.

The pension adjustment is based on the statutory minimum security level of 48%. This is based on both the general wage trend and the contributory income of those insured. This basis for calculation means that pensions will increase slightly more in July than would be expected based purely on wage trends.

Federal Minister of Labor Hubertus Heil emphasizes that stable and adequate pensions are not a gift, but an expression of respect for a long working life: "Many people rightly rely on a reliable pension in old age. This increase strengthens their purchasing power and is a sign of fairness."

The new regulation will come into force on July 1, 2025, as soon as the Federal Council has given its approval and it has been published in the Federal Law Gazette.

Quelle: BMAS, Pressemitteilung – 04/30/25

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