Overview
- The federal cabinet, which approved the change on Wednesday, raised the current pension value from €40.79 to €42.52 to take effect on 1 July, pending Bundesrat consent.
- Roughly 21 to 21.5 million people will see automatic increases that cover old‑age, reduced‑earning‑capacity, and survivor pensions without any application.
- A standard pension after 45 years at average pay will rise by €77.85 a month, while people with lower prior earnings will see smaller gains in euros.
- The adjustment reflects stronger wage growth and the guaranteed 48 percent pension level that the government has fixed through 2031.
- Funding pressures are flagged, with reports of about €1.2 billion in extra federal transfers in 2026–27 and Finance Minister Lars Klingbeil floating a higher contribution ceiling pending a June reform report.