Pension increase 2025
Why the pension increases less than expected in July
In summer, the pension increase comes by 3.74 percent. But pensioners don’t notice much of that at first. We explain the reason.
There are some processes in pension insurance, you don’t have to understand. But you should already know them. In December, the Federal Council approved the increase in social security contributions for long -term care insurance. The matter was finally decided: the basic contribution for care increases by 0.2 percentage points, from up to then 3.4 percent to 3.6 percent. This increase has been due since January 1, 2025.
If social security contributions increase, insured persons do not have to do anything. The contribution is collected automatically. However, the German pension insurance (DRV) takes six months for this, so it only implements the pension increase in July 1st. This means that pensioners have not yet noticed anything in their account from this increase in taxes.
In July, 1.2 percentage points of the pension increase are missing
On July 1st, however, the change will be all the more important. Not only is 3.6 percent of the pension for care for the first time. The increase for the months of January to June will also be retained. As a result, the pension effectively is 1.2 percentage points smaller than in the months afterwards.
So, don’t be surprised that so little of the pension increase will be left in July.
The DRV only wants to inform about this in June/July with a letter to all pension recipients. With a pension of 1000 euros, this additional payment accounts for 12 euros, because unlike professionals, pensioners have to pay the contribution to long -term care insurance completely – not only half. Incidentally, the pension increase at 1000 euros pension corresponds to 37.40 euros. However, social security contributions and possibly taxes go off.
Number of children is important
Important to know: The exact contribution rate of long -term care insurance for pensioners depends on the number of children. Anyone who has a child pays the base rate of 3.6 percent. Everyone else pays (no child) or a little less, yes after how many children they have:
| Pensioner | Care contribution |
| without children | 4.20 % |
| with a child | 3.60 % |
| With two children | 3.35 % |
| with three children | 3.10 % |
| with four children | 2.85 % |
| More than four children | 2.60 % |
| Source: DRV | |
The premium increase is the same for everyone, namely 0.2 percentage points – no matter how many children you have.
Incidentally, it is worth checking whether the DRV really took all children into account in the taxes for care. The . This is not adapted retrospectively, but only from the time when pensioners report the error and present a birth certificate.
So much for social security contributions of 1000 euros pension
The following table shows what will go from pension in addition to care from July 1st. In the case of significantly higher pensions, taxes are added.
| Social security contributions to 1000 euros | Contribution | Pension fund takes over | Deduction |
| health insurance | 14.60 % | the half |
-73.00 € |
| Additional contribution (on average) |
2.50 % |
the half |
-12.50 € |
| Nursing insurance (1 child) |
3.60 % |
nothing |
-36.00 € |
| remain |
€ 878.50 |
urb
Source: Stern
