From 1 July 2026, pensions in Germany will rise by 4.24 percent. The current pension value (Rentenwert) increases from €40.79 to €42.52. The Federal Cabinet (Bundeskabinett) approved the pension adjustment ordinance on 29 April 2026.
The Bundesrat vote is still pending as of 4 June 2026. The adjustment is expected to pass without changes. Final approval by the Bundesrat is scheduled for 12 June 2026.
How does the pension value work?
The pension value is the euro amount attached to one pension point (Entgeltpunkt). You collect points throughout your working life based on how your earnings compare to the national average. You receive one point if you earn exactly the average wage in a given year. Multiply your total points by the current pension value to get your gross monthly pension.
A standard retiree (Eckrentner) is someone who worked 45 years at the average wage. This retiree will receive €77.85 more per month from July 2026.
The pension increase applies to all 21.5 million pensioners
The adjustment applies to all 21.5 million pensioners across Germany. Since 2023, a single uniform pension value has applied to both western and eastern German states. There is no longer a separate eastern rate.
When the extra money arrives depends on when you retired:
- If your pension started in April 2004 or later, you receive it in arrears (nachschüssig) at the end of the month. The increased payment lands in your account at the end of July 2026.
- If you retired before April 2004, you receive it in advance. The July pension is paid at the end of June 2026.
You do not need to apply for anything. The adjustment is automatic. Deutsche Rentenversicherung will send you a pension adjustment notification between approximately 14 June and 23 July 2026.
Will the pension increase affect pensioners living outside Germany?
If you live outside Germany and receive a German pension, the 4.24 percent increase applies to you as well. The higher amount is paid to the same account as your current pension, in the same currency. No action is required.
If you worked in Germany for a limited period and want to check how many pension points you have accumulated, you can request a pension statement (Renteninformation) from Deutsche Rentenversicherung.
How the German pension system works for expats →
Why are pensions in Germany rising this much?
German pensions follow the development of gross wages. Strong wage growth in 2025 is the primary driver of this year’s adjustment. This is the fourth time in five years that the adjustment has exceeded 4%.
The government locked in a pension floor (Haltelinie) under the Rentenpaket 2025. It sets a minimum pension level of 48% through 2031. The pension level measures the ratio of a standard pension to average wages.
