German statutory pensions increased by 4.24% on July 1, 2026. The current pension value rose from EUR 40.79 to EUR 42.52.
Germany’s Bundesrat approved the pension adjustment on June 12, 2026. The increase is applied automatically and pensioners do not need to submit a separate application.
According to the German Pension Insurance, a standard pensioner with 45 contribution years and average earnings receives an additional EUR 77.85 per month as a result of the adjustment.
The date on which the higher pension is first paid depends on when the pension started. People whose pension began in April 2004 or later are paid in arrears and therefore receive the increased July pension at the end of July. Those whose pension started by March 2004 are paid in advance.
People permanently living abroad who receive a German statutory pension also generally benefit from the regular pension adjustment. Even with permanent residence abroad, a German statutory pension may remain subject to tax in Germany. The tax consequences depend, among other things, on the country of residence, any applicable double taxation agreement and the individual’s personal tax situation. Health insurance and pension payment rules may also require separate consideration.
Relevance: The pension adjustment initially increases the gross pension. For pensioners living abroad, the net increase may be smaller than the gross increase. A German statutory pension may remain subject to tax in Germany even when the recipient resides abroad; tax rules in the country of residence and any applicable double taxation agreement may also be relevant. Health insurance and other personal deductions can further affect the actual net impact. Personal financial planning should therefore consider more than the percentage pension increase alone.
Effective date:
