Overview
- The pension value will increase from €40.79 to €42.52 per Entgeltpunkt, a 4.24% rise that takes effect on 1 July 2026 and covers more than 20 million recipients.
- Lohi calculations show the gross monthly uplift equals €21.20 for a €500 pension, €42.40 for €1,000, €63.60 for €1,500 and €84.80 for €2,000 before deductions.
- Pensioners must pay part of statutory health insurance and all long‑term care contributions, which typically shave roughly 10–13% off the gross gain and reduce the net increase substantially.
- Tax rules can create new obligations because the 2026 Grundfreibetrag is €12,348 for singles and €24,696 for couples, and new retirees in 2026 must declare 84% of their pension as taxable.
- Because the raise applies only from July this year, the full tax impact will be clearer in 2027 and existing pensioners may face higher relative taxation since their tax‑free allowance was fixed at retirement.