Particle.news
Download on the App Store

Germany Eyes 3.7% Pension Increase for July 2026 in Draft Report

The forecast includes a costly reform package facing employer resistance ahead of a Bundestag vote in November.

Overview

  • The internal Rentenversicherungsbericht projects a 3.73% adjustment from 1 July 2026, with the final rate to be set in spring based on confirmed wage data.
  • The draft incorporates the coalition’s plan to secure a 48% pension level through 2031 and to expand the Mütterrente from 2027, with long‑term costs for the latter put at about €62.7 billion through 2039 and roughly €5 billion annually.
  • Employers and economic institutes urge pausing the Mütterrente due to weak growth, while CSU and SPD leaders defend the measure as a fairness step for parents of pre‑1992 children.
  • The report sketches a more favorable contribution path, keeping the rate at 18.6% until 2028 before rising to 19.8% and reaching 20.1% by 2030 and 21.2% by 2039.
  • The Aktivrente is set to begin on 1 January 2026 with up to €2,000 a month tax‑free earnings for employed retirees who still owe health and long‑term care contributions, and a 1 December 2025 technical change will fold a separate pension top‑up into monthly payments that may reduce some survivor benefits through income counting.