Overview

• The German cabinet has approved a 3.74% pension increase effective July 1, 2025, pending Bundesrat approval.
• More than 21 million pensioners will benefit, with payments adjusted based on retirement dates and staggered accordingly.
• The increase ensures the legally mandated pension level of 48% of average earnings is upheld, reflecting a 3.69% rise in wages.
• In July, pensioners will see a net increase of 2.34% due to retroactive deductions for nursing care insurance, with the full adjustment applied in August.
• Recipients of reduced earning capacity pensions will receive an additional proportional surcharge alongside the general increase.