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German pensions to rise by 3.74%, labour minister tells paper
Published by Global Banking and Finance Review
Posted on March 6, 2025
1 min readLast updated: January 25, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on March 6, 2025
1 min readLast updated: January 25, 2026
German pensions will rise by 3.74% from July 1, 2024, surpassing the 2.5% inflation rate. Labour Minister Hubertus Heil announced the increase, which awaits cabinet approval.
BERLIN (Reuters) - Germany's roughly 21 million pensioners will see their payments rise by 3.74% from July 1, higher than the current inflation rate, the country's labour minister told the Sueddeutsche Zeitung newspaper on Thursday.
"Last year, the labour market remained stable despite all the crises, and there were decent wage settlements," Hubertus Heil told the newspaper. "Pensioners have earned that."
German inflation, when harmonised to compared with other EU countries, came in at 2.5% year on year in 2024.
Pensions rose by 4.57% last year.
Heil is part of the Social Democrats' team holding talks with the conservatives to form a new coalition government, during which pensions are likely to be a contentious issue.
The pension increase on July 1 must be approved by the cabinet by decree.
A date for this had not yet been set on Thursday.
(Reporting by Holger Hansen, Writing by Miranda Murray, Editing by Friederike Heine)
German pensions will rise by 3.74% starting July 1.
The inflation rate in Germany, harmonised with other EU countries, was 2.5% year on year in 2024.
The announcement was made by Hubertus Heil, Germany's labour minister.
The pension increase must be approved by the cabinet through a decree.
Pensions rose by 4.57% last year.
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