Here's how much more pensioners in Germany can expect to receive this year
From this summer, pensioners in Germany will receive more money. Pensioners in the east of the country will receive 1.47 percent more than those in the west.
Pensioners in Germany will receive more money starting from July 1st this year. On Monday, the Federal Labour Ministry announced that pensions will rise by 4.39 percent in western Germany and 5.86 percent in eastern Germany.
"These increases are possible because the labour market is in good shape and wages are rising," Labour Minister Hubertus Heil said. He added that the security level would remain stable at over 48 percent.
"I want to stabilise the statutory pension in the long term so that people can continue to rely on a good old-age provision in the future," Heil added.
For an average earner with 45 years of contributions, the pension increases will amount to around €71 more per month in the west and €93 more in the east of the country.
READ ALSO: How long do you have to work to receive a German pension?
A large proportion of the more than 21 million pensioners, however, could still face a loss of purchasing power despite the increases, as economic research institutes recently predicted inflation of between 5.4 and 6.2 percent for this year.
Last year, despite a record increase in pensions of 5.35 percent in the west and 6.12 percent in the west, the pension adjustment remained below the inflation rate. This amounted to 6.9 percent for the full year 2022, according to the statistics office.
According to the figures presented by the Labour Ministry, over the last ten years, the pension value on an annual average in the west was 26 percent overall, and in the east even 40 percent. In the same period, prices rose by only 20 percent.
Therefore, with a €1,000 pension, the pension adjustment in this period amounted to €63 in the west and by €198 in the east above inflation.
"Currently concluded collective agreements provide for quite considerable wage increases. They will then be reflected in the pension adjustment on July 1st, 2024," the Labour Ministry said.
"The principle that pensions follow wages has proven itself with regard to the income development of pensioners."
READ ALSO: How does Germany’s retirement age compare to the rest of Europe?
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Pensioners in Germany will receive more money starting from July 1st this year. On Monday, the Federal Labour Ministry announced that pensions will rise by 4.39 percent in western Germany and 5.86 percent in eastern Germany.
"These increases are possible because the labour market is in good shape and wages are rising," Labour Minister Hubertus Heil said. He added that the security level would remain stable at over 48 percent.
"I want to stabilise the statutory pension in the long term so that people can continue to rely on a good old-age provision in the future," Heil added.
For an average earner with 45 years of contributions, the pension increases will amount to around €71 more per month in the west and €93 more in the east of the country.
READ ALSO: How long do you have to work to receive a German pension?
A large proportion of the more than 21 million pensioners, however, could still face a loss of purchasing power despite the increases, as economic research institutes recently predicted inflation of between 5.4 and 6.2 percent for this year.
Last year, despite a record increase in pensions of 5.35 percent in the west and 6.12 percent in the west, the pension adjustment remained below the inflation rate. This amounted to 6.9 percent for the full year 2022, according to the statistics office.
According to the figures presented by the Labour Ministry, over the last ten years, the pension value on an annual average in the west was 26 percent overall, and in the east even 40 percent. In the same period, prices rose by only 20 percent.
Therefore, with a €1,000 pension, the pension adjustment in this period amounted to €63 in the west and by €198 in the east above inflation.
"Currently concluded collective agreements provide for quite considerable wage increases. They will then be reflected in the pension adjustment on July 1st, 2024," the Labour Ministry said.
"The principle that pensions follow wages has proven itself with regard to the income development of pensioners."
READ ALSO: How does Germany’s retirement age compare to the rest of Europe?
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