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Basic Benefits Frozen for 2026 as Pension Rise and Payment Changes Approach

Bundesrat consent is still required and final 2026 pension figures will be set in spring after wage data are confirmed.

Overview

  • Germany’s cabinet has set a 2026 “zero round” for Bürgergeld rule rates, which also fixes Sozialhilfe and Grundsicherung levels at 2025 amounts; the regulation is published but still needs Bundesrat approval.
  • About 1.26 million people received Grundsicherung at end‑2024, including roughly 739,000 in old‑age support, who will face unchanged standard allowances in 2026 as living costs continue to bite.
  • A draft pension report projects roughly a 3.7% pension increase from 1 July 2026, with the value per Entgeltpunkt likely rising from €40.79 to about €42.17 once the government finalizes the adjustment.
  • The reference average earnings for 2026 are set to €51,944, making one full pension point cost €9,670.58; without pay rises, workers accrue fewer points, which can lower future pensions.
  • Operational shifts start now: the last separate rentenzuschlag is paid in mid‑November before being folded into monthly pensions from December, November’s pension posts early on Friday, Nov. 28, and recipients relying on cash payouts must provide bank details to avoid interruptions.