Further substantial pensions increase on 1 July

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2024 pension adjustment Further substantial pensions increase on 1 July

Pensions are to be raised by 4.57 percent on 1 July, making 2024 the third consecutive year in which pensioners are benefiting from the growth in wages and salaries. The best part is that the same increase will be applied across Germany for the first time.

2 Min. Lesedauer

Senior citizens sitting on a park bench in autumn

A 4.57 percent increase of pensions is becoming effective on 1 July. 

Foto: Getty Images/iStockphoto

Good news for 21 million German pensioners: on 1 July pensions will be raised by 4.57 percent in all federal states. The increase is based on new data from the Federal Statistical Office and the pension provider Deutsche Rentenversicherung. This year’s pension adjustment is significantly higher than inflation: according to its Annual Economic Report 2024, the Federal Government expects consumer prices to rise by 2.8 percent. 

Federal Employment Minister Hubertus Heil spoke of “good news for pensioners,” adding that the strong labour market and high wage agreements were the reasons for the increase.

Uniform increase across Germany

For the first time, pensions are increasing to the same extent in both the old and the new federal states. “34 years after Germany’s Reunification, this is a true milestone for our country,” Heil said. “In terms of pensions, labour has the same value in Eastern and Western Germany.” 

The pension rate in the federal states of former East Germany caught up with the rest of the country last year. In the past, different rates had been applied for calculating pensions in former East Germany. Following a legislative change made in 2017, these have been gradually levelled up since 1 July 2018. The original plan had been for a uniform pension rate to be reached no sooner than on 1 July 2024. However, thanks to greater wage increases in former East Germany, this equalisation of pension rates was achieved a year sooner than legally stipulated.

What happens next? As is the case every year, the pension adjustment is determined by the Federal Ministry of Social Affairs in an ordinance, the so-called Pension Rate Determination Ordinance. This ordinance needs to be adopted by the Federal Cabinet, before being approved by the Bundesrat. The ordinance can enter into effect on 1 July 2024. 

More information is available on our pensions page.