Pension hammer! Up to 6.12 percent more from July 1st

The approximately 21 million pensioners in Germany can expect a sharp increase in their payments on July 1st.

Pensions are to rise by 5.35 percent in western Germany and by 6.12 percent in eastern Germany. This was announced by the Federal Ministry of Labor on Tuesday in Berlin. The news portal “The Pioneer” first reported on it.

The approximately 21 million pensioners in Germany can expect a sharp increase in their payments on July 1st. Pensions are to rise by 5.35 percent in western Germany and by 6.12 percent in eastern Germany. This was announced by the Federal Ministry of Labor on Tuesday in Berlin. The news portal “The Pioneer” first reported on it.

The regular pension adjustment is therefore likely to be significantly higher than initially assumed. At the end of November, Federal Labor Minister Hubertus Heil (SPD) called 4.4 percent. The reason is the positive development of pension income.

Hubertus Heil (SPD), Federal Minister of Labor and Social Affairs (Photo: Britta Pedersen/dpa)
Hubertus Heil (SPD), Federal Minister of Labor and Social Affairs (Photo: Britta Pedersen/dpa)

The reinstatement of the so-called catch-up factor announced by the coalition has already been taken into account. This change in calculation dampens the pension increase. The background is that in 2021, despite a slump in income due to the corona pandemic, there was no pension cut, but a pension guarantee still ensured a zero round. This is to be compensated for with the catch-up factor, which is still to be introduced by law.


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The increase that has now been announced is based on data from the Federal Statistical Office and the German Pension Insurance Association, as the ministry further announced. This results in an increase in the central pension value in the calculation in the west from currently 34.19 euros to 36.02 euros and the pension value (east) from currently 33.47 euros to 35.52 euros.

Heil emphasized: “I am pleased that we can announce a significant pension adjustment today.” That is good news for the people who have kept the shop running for years through their work. “Especially in view of the current challenges – be it rising prices or the international crisis – it is important to see that our pension system is working,” says Heil. The development of pensions should not be decoupled from the development of wages.

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