The last traffic light act
Pensions increase significantly from July 1st
It is probably the last litter of the traffic light coalition: the pension covers in Germany will increase from summer. The main reason for this is increased costs
The more than 21 million pensioners in Germany will receive 3.74 percent increasing remuneration on July 1. To this end, the Federal Cabinet decided the pension value provision regulation of the executive Minister of Labor Hubertus Heil (SPD), as it was said in government circles.
With the regulation, the pension value is determined so high that it reaches the legally prescribed pension level of 48 percent. For example, with a pension of 1,000 euros, the increase of 37.40 euros more. For a standard pension with average earnings and 45 years of contribution, pension adjustment means an increase of 66.15 euros a month. The increase had already been announced in March.
Rising wages drive pensions
The Pension Plus is mainly due to increased wages in Germany – according to official statistics, the wage increase for the pension was 3.69 percent.
Heil considered the increase in pension as “good news for the pensioners”. Thanks to the good wage development, pension adjustment strengthens your purchasing power. “This is important because many hard -working people are dependent on a decent pension according to a demanding working life,” said Heil. “Stable pensions are not alms, but hard earned and expression of performance justice.”
Pension level permanently at 48 percent
SPD parliamentary group vice Dagmar Schmidt pointed out that the applicable stop line expires of 48 percent pension level this year. But the new coalition wants to permanently secure the pension level at this value, Schmidt confirmed. “Without a legal action, the pension level will decrease in the long term. In 2038, pensioners with a pension of 1,000 euros a month would have just under 750 euros a year in the wallet than at a stable pension level of 48 percent.”
Heil’s pension regulation for adaptation this year-subject to the approval of the Federal Council-comes into force on July 1, 2025.
Dpa
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Source: Stern
I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.
