For the first time since 2010, there will be no pension increase in the west in the summer due to the Corona crisis. In the east, however, there is a slight increase.
Bonn – For years, pensions have been rising across Germany in the summer. The usual increase in old-age pensions will not be available in western Germany this year due to the corona crisis. The Federal Ministry of Labor announced on Thursday that pensions would actually have to go down because of the decline in wages. However, this is not legally possible as there is a so-called pension guarantee. From July 1st, pensioners in the East will get a slight increase in their pension by 0.72 percent, as the adjustment to the West level will not be suspended. Last year there was an increase in pension contributions of 4.2 percent in the east and 3.45 percent in the west.
Annual Pension Hike: Why Is It Failing This Year In The West?
The last time there was no pension increase was 2010. The reason for this was the financial crisis the year before. This time the pension in the west will not be increased any further because of the corona crisis. The reason for this is the wage drop in 2020 of 2.34 percent. The wages form the basis for the pension adjustment and arithmetically the pension contributions would even have to decrease. This calculation is based on data from the Federal Statistical Office. However, the statutory pension guarantee prevents pension cuts. Therefore, the remuneration in the west remains unchanged. Labor Minister Hubertus Heil said “Even and especially in times of crisis such as the current Covid 19 pandemic, pensioners can rely on the statutory pension.”
In the east there is still a minimal increase in salaries. The reason for this is the adjustment of the pension to the western level. By 2024, the pension value in the east of Germany is to be adjusted to that in the west until it is the same. After this year’s adjustment, earnings in the east will reach 97.9 percent of the value in the west, according to the ministry.(Dana Popp)
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