Germany to Merge Pension Supplement Into Monthly Payments on Dec. 1

Overview

• From December 1, 2025, the temporary supplement paid since July 2024 will be consolidated into the monthly pension and counted as income, affecting roughly three million beneficiaries.
• The Deutsche Rentenversicherung will recalculate the supplement using personal entitlement points; if the December amount exceeds November’s, the difference will be backpaid for up to 17 months, with no repayments required if it is lower.
• Survivor pensions face deductions once net income exceeds the statutory allowance of 26.4 pension values (about €1,076.86 from July 2025), with 40% of the excess offset against widow’s or widower’s benefits.
• The end of the exemption increases reported gross pension income, which can trigger income tax for some recipients or move others into higher progression, often raising the solidarity surcharge as well.
• Operational changes include the end of the separate mid‑month supplement payment and the discontinuation of Postbank cash disbursements, requiring affected retirees to provide bank account details.