A series of changes to the German state pension are set to come into force this month.

As outlined by the Deutsche Rentenversicherung (DRV), there will be additional income limits on pensions, improved protection for reduced earning capacity, and a continuation of the rise of the pension age, amongst other measures.

The measures most related to this month are the introduction of an annual income limit of just under €20,000 and the removal of the distinction between old and new federal state pensions.

There will also be an increase in the monthly minimum contribution for voluntary insurance in the state pension (from €100.07 per month to €103.42 per month). Those retiring this year will also see the taxable part of their pension increase from 83 to 83.5 per cent.

The removal of the distinction between old and new federal state pensions is an interesting measure.

“The contribution assessment ceiling and the reference value will apply uniformly throughout Germany for the first time from 2025. The distinction between old and new federal states in pension insurance will no longer apply from January 2025,” the DRV stated.

“The contribution assessment ceiling will rise to €8,050 per month in 2025. In 2024, it was €7,550 per month in the old federal states and €7,450 in the new federal states. The contribution assessment ceiling determines the maximum amount up to which earned income is taken into account in the calculation of the pension insurance contribution. No contributions are paid for income above this.”

It added: “The reference value will rise to €3,745 in 2025. In 2024, it was €3,535 per month in the old federal states and €3,465 in the new federal states. Among other things, it is important for the calculation of contributions to pension insurance for self-employed persons subject to compulsory insurance.”

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