More than 21 million retirees in Germany will receive a 4.57 percent raise starting July 1.
With this increase, pensions will rise faster than inflation in the country. The last time pensions increased faster than inflation was in 2000.
Estimates made in the autumn predicted an increase in pensions of only 3.5 percent.
In the last two years, the increase in pensions has lagged behind inflation. However, inflation slowed down in Germany and in March, inflation increased by 2.2 percent compared to the same month of the year.
FOR THE FIRST TIME THE ENTIRE COUNTRY WILL RECEIVE THE SAME INCREASE
For the first time, the pension increase will be applied equally across the country.
Historically, pensions in the former East Germany lagged behind those in the former West Germany.
Last year, a larger increase in the German Democratic Republic (East Germany) equalized pensions across the country earlier than originally planned. This was because wages rose faster in the East.
Last year’s pension increase was 4.39 percent in the former West Germany and 5.86 percent in the former East Germany.
