Germany to Increase Pensions by 3.74% Starting July 1

The adjustment reflects strong wage growth and aims to maintain purchasing power for retirees.

The pension increase, effective July 1, 2025, is attributed to stable employment and significant wage growth in the previous year.
The adjustment ensures that the minimum pension level remains at 48% of average earnings, as mandated by current law.
A standard pension, based on 45 years of contributions, will see a monthly rise of approximately €66.15.
The SPD advocates for legally securing the 48% pension level, while the CDU prioritizes limiting overall social contribution rates.
The increase surpasses the projected 2025 inflation rate of 2%, bolstering retirees' purchasing power.