Particle.news

Download on the App Store

Germany’s 3.74% Pension Hike and Care Budget Overhaul Take Effect

The mid-year package preserves retiree purchasing power, streamlines care support — setting the stage for tax-free earnings incentives for pensioners in 2026.

Image
Image

Overview

  • Statutory pension points rise from €39.32 to €40.79, delivering a 3.74% increase for about 21 million retirees.
  • Verhinderungs- and Kurzzeitpflege services are merged into a €3,539 annual budget for those at care level 2 or higher.
  • Hourly minimum wages in elder care climb to €20.50 for skilled nurses, €17.35 for qualified assistants and €16.10 for aides.
  • The deadline for 2024 tax returns is set for July 31, 2025, with a standard extension to April 30, 2026 for filings prepared by tax advisors.
  • Automatic lump-sum supplements are being disbursed to those who transitioned from disability pensions between 2001 and 2018, and a planned 'Aktivrente' would allow pensioners to earn up to €2,000 per month tax-free from January 2026.