Ministerial round meets: Stable pension level: BAS brings your law into the cabinet

A stable pension level and better mother pensions: Social Minister Bärbel BAS brings her pension law into the cabinet today so that it can be decided by the Bundestag by the end of the year. In addition, the ministerial round has several other topics on the plan – from the Germany ticket to combating undeclared work and the new tariff loyalty law to a number of energy laws.

The pension law will affect almost everyone in the country today or in the future. This means that the pensions are a bit higher than without the reform. As agreed in the coalition agreement of the CDU, CSU and SPD, the current pension level of 48 percent is to be laid down by 2031. This stop line has been in effect since 2018, it is now being extended.

Federation pays billions to the pension fund

Specifically, this means that pensions continue to follow wage development and increase accordingly. It would be different without the new law: the pension level would decrease compared to wages – around one percentage point by 2031. The pension level is only a calculation size. After 45 years of contributions, she puts average earnings in relation to the current average wage. That says nothing about your own pension, but is an orientation value.

To the reform, billions of billions must also flow into the pension funds. According to the government plans, the money should not come from the contributors, but from the federal budget. This also applies to the financing of the planned better mother pensions.

So far, three full years have been taken into account for the upbringing of children born in 1992. For children who were born before, it has only been two and a half years. This should be adjusted to three years with the reform. According to the government, around ten million people are affected, especially women – hence the name.

Controversial tariff loyalty law

In addition, BAS has also finished the draft of a tariff loyalty law. This would oblige companies that receive public orders of the federal government of 50,000 euros or more to comply with tariff conditions for their employees. The aim is to strengthen the tariff bond.

There is criticism from the economy. Employer president Rainer Dulger warned of exuberant bureaucracy and demanded a stopping the law. Unionists, on the other hand, support the plans. The IG Metall recalled that the federal government wants to invest for the foreseeable future billions of billions in streets, bridges and railway lines – and that it should insist on good working conditions. However, orders from the Bundeswehr are excluded from the law.

Gass storage and Germany ticket

Although there is actually a parliamentary summer break, the cabinet, led by Federal Chancellor Friedrich Merz (CDU), has further draft laws on the table. In this way, gas customers are to be relieved of the costs of the gas storage levy. The federal government also wants to enable underground CO2 storage.

A change in the law is planned to continue the Germany ticket in the coming year. It is about federal funds for financing the ticket. Vice Chancellor Lars Klingbeil (SPD) brings a draft law to fight for undeclared work and tax evasion.