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Germany Confirms 4.24% Pension Rise as Government Proposes Cutting Sick Pay for High Part‑Pensioners

A ministry draft would remove Krankengeld for anyone whose part pension equals two‑thirds or more of a full pension to trim GKV costs, a change the government says yields only modest savings.

Overview

  • The government confirmed that statutory pensions will rise by 4.24% and that the new current pension value will be €42.52 per Entgeltpunkt, with the increase paid automatically from 1 July 2026.
  • A Bundesgesundheitsministerium referentenentwurf would, if enacted for 2027, end entitlement to Krankengeld for recipients of a Teilrente equal to or above two‑thirds of the Vollrente, and the rule would apply even when the person remains in social‑security‑obligatory employment.
  • Officials and advisors estimate the two‑thirds threshold would save only about €30–36 million a year as one small element of a larger package to stabilise statutory health insurance (GKV), and the draft is not yet law.
  • More than 1.3 million people draw a pension while working, but it is unclear how many of them receive a Teilrente at or above the proposed cutoff, meaning the practical reach and hardship of the change are still unknown.
  • A mid‑June WSI study found pension costs relative to GDP and contribution rates are lower than in the late 1990s, a finding that has intensified political debate and means the draft’s rationale and any wider pension cuts will face close scrutiny as the lawmaking process continues.