That means the minimum wage of 12 euros from October for the pension

Created: 04/08/2022Updated: 04/08/2022 08:13

By: Anne Hund

The minimum wage is set to rise to €12 on October 1st.

© Fernando Gutierrez-Juarez/dpa

Experts calculate how the future minimum wage will affect the pension entitlement of full-time and part-time employees.

The result surprises.

So far, the 

 is 9.82 euros.

An adjustment to EUR 10.45 is already planned for July 1st.

On October 1, the level of the lower wage limit is then to be raised once to

outside of the usual increase steps.

According to Federal Labor Minister Hubertus Heil (SPD), more than six million employees should benefit from this.

But what does the higher minimum wage mean for future

?

The minimum wage will rise to €12 an hour from October

The Federal Association of Pension Advisors has investigated this question.

The answer is likely to be sobering for many of those affected.

The

not increasing at nearly the same pace, as

reported by

Because

are often entitled to a

.

But the entitlement to a basic pension surcharge decreases when the minimum wage increases.

The Association of Pension Advisors speaks of a “cannibalization effect”.

And this is especially true for full-time employees.

Also read

Full-time employment: Pensions for minimum wage earners only increase by 3.5 percent

According to a February 23 statement from the Association of Pension Advisors, the calculation works as follows: "If we assume that the

will continue to be 59.7% of average wages in the future,

Employees with the new minimum wage after 45 years of contributions to a

(with today's pension value)," says the statement.

“This would include a

.

After

.”

For comparison, how high would the pension be if the minimum wage was 10.45 euros or the corresponding ratio to average wages?

"1,093 euros gross pension or 966 euros after deducting social security contributions," calculate the experts.

The result is amazing, as the statement goes on to say: "

."

introduced in January 2021,

" says the statement in the statement.

"About 3/4 of a higher pension due to the minimum wage increase is lost through a countervailing, ie lower, basic pension supplement." This "cannibalization effect" would be even greater if less than 45 years of contributions were assumed.

"Then up to 87.5% of the additional pension contributions of the low earners for their own pension can be 'in vain'."

You can also read a lot of information about the job and the associated salary here

12 euros minimum wage from October: part-time employees will have a significantly higher pension entitlement

The Federal Association of Pension Advisors also announced that the "future

who work a little more than 20 hours a week for 12 euros will have a particularly positive effect".

The calculation works as follows: “Anyone who works 22.5 hours a week for 12 euros instead of 10.45 euros would more than double the resulting pension (including basic pension surcharge) from 350 to 753 euros gross per month after 35 years of contributions, although the underlying Hourly wage increased by just under 15%.”

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