German pensions to increase by up to 6.12% - govt confirms

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German pensions to increase by up to 6.12% - govt confirms

By Natalie Tuck

22/03/22

German pensions are to increase from 1 July as a result of higher wages, the German government has announced.

As reported by Associated Press, the German Labour Ministry said pensions will increase by 5.35 per cent in the former West Germany and by 6.12 per cent in the former East Germany.

Last year, there was no increase to pensions in the west and just a 0.72 per cent increase in the east due to the economic impacts caused by the Covid-19 pandemic.

Labor Minister Hubertus Heil said that “because we managed in Germany to keep the labour market stable in the (coronavirus) crisis,” the financing of the pension system is in good shape and a big increase is possible.

Pension increases in Germany are mostly linked to wage developments, which have been impacted by rising inflation.

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