Germany's 21 million pensioners will see their pensions increase by 3.74% starting July 1, 2025. This adjustment, announced by Labor Minister Hubertus Heil, reflects last year’s strong wage growth and aims to bolster retirees' purchasing power.

The increase raises the standard pension by approximately €66 per month for those with 45 years of contributions.

Heil emphasized that stable pensions are a matter of fairness for those who have worked hard throughout their lives.

The adjustment follows a legally defined formula tied to wage trends.

Discussions between the SPD and the Union are ongoing to ensure the long-term sustainability of the pension system, with debates centering on maintaining the minimum pension level at 48% of average earnings.

The SPD supports this threshold, while the Union seeks to limit overall social contributions.