Pensioners in Germany will receive more money starting July. The cabinet approved a pension adjustment on Wednesday that will increase benefits by 4.24 percent. The Bundesrat must still approve the plans. Federal Labor Minister Bärbel Bas (SPD) announced the pension increase in early March. The reason for the higher increase than expected is the favorable development of wages, to which pensions are tied.
Bas called it "good news" for the elderly in the country. The noticeable adjustment shows "the reliability of the statutory pension comes to the fore," she continued. "Decent pensions are not a luxury, but a matter of performance-based fairness for people who have worked hard all their lives.
For a standard pension with average earnings and 45 years of contributions, the pension adjustment means an increase of €77.85 per month, as explained by the Federal Ministry of Labor. The adjustment is set to take effect on July 1 of this year, following approval by the Bundesrat.
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