As of: March 25, 2024, 1:40 p.m
By: Amy Walker
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The Ministry of Labor has announced the pension increase for 2024.
Pensioners get significantly more money.
Berlin – Pensions in Germany will rise by 4.57 percent on July 1st.
As the Federal Ministry of Social Affairs announced on Tuesday (March 19), the pension adjustment is “above four percent for the third year in a row”.
Accordingly, the pension adjustment is now taking place nationwide for the first time, after the pension value in the east had already reached the western value last year.
Increase in pensions from July 2024 also for people with reduced earning capacity
“The strong labor market and good wage agreements make this possible.
This year, the pension adjustment will be the same throughout Germany for the first time and is well above the inflation rate,” says Federal Social Minister Hubertus Heil (SPD).
Last year, pensions rose by 4.39 percent in the west and 5.86 percent in the east.
According to the Ministry of Labor, the legal holding line was in effect, which guarantees a total pension level of 48 percent of the average wage.
Otherwise the pension increase would have been a little lower.
For the standard pension of an average earner with 45 years of contributions, there is 77.40 euros more per month.
More pension from July: One pension point now costs 39.31 euros
The so-called sustainability factor when calculating pensions takes into account the increasing number of pension recipients compared to employees.
If the ratio deteriorates to the detriment of the contributors, this will dampen the pension increase.
Accordingly, the factor had a minus of 0.16 percentage points.
In purely mathematical terms, this would have resulted in an increase of 0.1 cent less per pension point, which would be just under the level of 48 percent.
The value of a pension point will therefore rise from 37.60 euros to 39.32 euros on July 1st instead of just 39.31 euros.
The pension level of 48 percent is currently only guaranteed until 2025.
The second pension package planned by the federal government envisages extending the guarantee until at least 2039.
As a result, the contribution rates for statutory pension insurance are expected to rise much more than previously assumed
Pensions in Germany will rise sharply again in the summer (symbolic photo) © IMAGO/imageBROKER/Oleksandr Latkun
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However, in July 2024, not only old-age pensions will increase, but also disability pensions and pensions for survivors (widow's pensions and orphans' pensions).
How high these will rise is already clear: there will be between 4.5 and 7.5 percent more from summer.
Anyone who receives (or has received) both one and the other can look forward to a double increase.
However, this increase does not apply to everyone, but only to those who received a disability pension in a certain period (before 2019).
(whale with material from Reuters)