Pensions in Germany are set to rise by 4.57% on July 1, the Ministry of Labour and Social Affairs announced in Berlin on Tuesday.
The pension adjustment is based on the latest data from the Federal Statistical Office and the German Pension Insurance. A pension of €1,000 ($1,084) will thus rise by €45.70.
This is the third year in a row that the pension adjustment has exceeded 4%, the ministry said. Labour Minister Hubertus Heil spoke of "good news" for pensioners.
"The strong labour market and good wage agreements make this possible," said Heil. The pension adjustment is well above the inflation rate, he pointed out.
For the first time, pensions are rising equally in the former East and West German states. In the former East German states, the pension value had already reached the western value last year due to higher wage increases.
Thirty-four years after German reunification, the standardized adjustment in the west and east is a milestone for the country, the minister said. "Work is worth the same in east and west with regard to pensions."
Heil referred to the governing coalition's pension plans. With the pension package, the government is stabilizing the statutory pension in the long term, while at the same time relieving the burden on future contributors with the generational capital.