Status: 03/20/2023 2:40 p.m
Pensioners will receive 4.39 percent more money in western Germany from the summer and 5.86 percent in the east. Because of the high inflation, the bottom line increase could mean a loss of purchasing power.
Pensions in Germany will increase by 4.39 percent in western Germany and 5.86 percent in the new federal states as of July 1. This was announced by Federal Labor Minister Hubertus Heil on the sidelines of a trip to Canada.
Due to the higher wage increase in the east, the east pension adjustment will be achieved a year earlier than legally stipulated. A smaller increase was expected in December. “These increases are possible because the job market is in good shape and wages are rising,” Heil said.
High inflation also expected for 2023
For a large part of the more than 21 million pensioners, the bottom line could be a loss of purchasing power. Economic research institutes recently predicted inflation of between 5.4 and 6.2 percent for this year.
“The pension adjustment is currently lagging behind inflation, but that is only a snapshot,” said a statement from the Federal Ministry of Labor.
The principle that pensions follow wages has proven itself with regard to the income development of pensioners. “Currently concluded collective agreements provide for considerable wage increases,” the statement said. These would then be reflected in the pension adjustment as of July 1, 2024.
The wage increase relevant for the current pension adjustment is 4.50 percent in the old federal states and 6.78 percent in the new federal states.
The president of the German pension insurance, Gundula Roßbach, had already emphasized the very good cash situation in an interview with “Bild am Sonntag” at the weekend.
She spoke of a surplus of 3.4 billion euros last year. “The numbers prove: The pension is stable and will remain stable,” said Roßbach.