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Germany Guarantees 48% Pension Level Through 2031

An expert commission found an annual €40 billion shortfall that may push lawmakers to shift non‑contributory pension costs onto general taxation.

Overview

  • The Rentenpaket 2025 legally fixes the statutory pension level at a minimum of 48 percent through 2031 and suspends two damping factors that would otherwise slow annual pension increases.
  • The Alterssicherungskommission (ASK) reported in June 2026 an estimated €40 billion gap in 2023 between non‑contributory pension obligations and federal subsidies and recommended funding those items from general tax revenue.
  • The final GKV stabilization law published in July 2026 did not adopt a blanket cut to statutory sickness pay and keeps the standard 70%/90% calculation for continuing employment.
  • From 1 January 2027 new Krankengeld rules will apply when an employment relationship ends during incapacity, generally reducing entitlement to about 60% of net pay or 67% when a child qualifies.
  • A draft health ministry proposal would delay the top care‑home subsidy tier from roughly 36 months to more than 54 months and a regional court ruling on a 99.99% part‑pension that voided a supplementary pension is under appeal, signaling legal and practical risks for working pensioners.