How much more pension is there in 2025? (Image: Vlada Karpovich, Pexels)
In 2025, millions of pensioners in Germany can also look forward to increasing their remuneration.
The annual pension adjustment is coming up again – and this time it could be particularly noticeable. The reason for this is the stable economic development, rising wages and the mechanisms of pension formula.
But how high does it fall Pension increase in 2025 Really? What are the differences between East and West? And what does that mean for the purchasing power of pensioners in the face of inflation? Here is all important information about pension adjustment 2025 and what it means for retirees.
Pension increase in 2025: How much more pension is there?
Away July 1, 2025 the pensions rise around 3.74 percent – That means a noticeable plus for many pensioners, but how much is really left in the end? Who currently 1,500 euros gross Get a pension will receive in the future 1,556.10 euros – a plus of 56.10 euros.
After deductions for health and long-term care insurance, however, there is less left over, because the contributions also rise slightly. There are also changes in tax: the taxable share for new players is only in 2025 15 percentwhich means that a larger part of the pension must be taxed.
Compared to the past few years, the increase is somewhat lower – in 2024 it was still included 4.57 percent. Nevertheless, the pension level remains stable 48 percentso that pensioners have at least a small plus despite inflation.
| Pension adjustment 2025 | +3.74 % from July 1, 2025 |
| New pension value (per fee) | € 40.79 (previously: € 39.32) |
| Inflation rate 2025 | 2.3 % |
| Pension level | Stable at 48 % |
| Contribution rate pension insurance | 18.6 % (no increase) |
| Gross increase example | € 1,000 → € 1,037.40 (+37.40 €) € 1,500 → € 1,556.10 (+56.10 €) |
| Health insurance contribution | Increases by 0.8 percentage points to 2.5 % |
| Nursing insurance contribution | Increase by 0.2 percentage points |
| Tax exemption for Neurentner | 15 % (2024: 16 %) |
| Added earnings | Full disability: € 19,661/year Partial disability: € 39,322/year |
| Retirement age 2025 | 66 years + 4 months (for year 1960) |
| Pension forecast until 2038 | Without reforms drop to 45 % |
How is the 2025 pension increase calculated?
The pension adjustment follows a solid mechanism that has been linked to the wage development of recent years. The pension formula takes into account:
- Increase in wages 2024: +3.69 percent
- Adaptation factor pension level: +0.05 percent
- Total adjustment 2025: +3.74 percent
The background is the legal regulation (§255i SGB VI), which is a pension level of at least 48 percent of the average wage prescribed. Without this mechanism, the pension increase would have been lower – probably at around 3.5 percent.
How much more is there? (Gross and net calculation)
Sound at first glance 3.74 percent After a solid increase. But what really depends on the account? Here is an overview of how the adaptation affects:
| Gross tores 2024 | Gross tores 2025 | Increase in € | Net growth (estimated) |
|---|---|---|---|
| 1,000 € | € 1,037.40 | +37.40 € | approx. +31.40 € |
| 1,500 € | € 1,556.10 | +56.10 € | approx. +47.10 € |
| 2,000 € | € 2,074.80 | +74.80 € | approx. +63.80 € |
The net values ​​are estimates because rising Health and nursing insurance contributions have to be deducted.
Which deductions reduce the increase?
Despite the pension adjustment, some social security contributions will increase in 2025, which reduces the net effect:
- Health insurance surcharge rises by 0.8 percent → at 1,500 euros gross tores does that -6 euros per month out of.
- Nursing insurance contribution rises by 0.2 percent → Additional burden of -3 euros per month.
The pension remains up, but from the 56.10 euros gross more (at 1,500 euros pension) Stay net just Around 47.10 euros left over.
What is the pension increase compared to the past few years?
If you look at the development of recent years, it becomes clear that the adjustment 2025 falls Noticeably lower from as 2023 and 2024.
| Year | Increase (west) | Increase (east) |
|---|---|---|
| 2023 | +4.39 % | +5.86 % |
| 2024 | +4.57 % | +4.57 % |
| 2025 | +3.74 % | +3.74 % |
The reason for the lower increase is Slowed wage development in Germany. In addition, the pension contribution rate remains stable 18.6 percentso that there are no additional scope for stronger raising.
Tax effects: how much is the pension left?
Another factor: Taxes on the pension. Anyone who will retire in 2025 must Tax 85 percent of his pension. The tax -free share drops every year:
| Year of entry | Tax -free share |
|---|---|
| 2023 | 17 % |
| 2024 | 16 % |
| 2025 | 15 % |
So who 2025 retirehas only 15 percent of his remuneration tax -freewhile the rest is fully taxed.
What does the increase mean for basic security recipients?
For Pensioners with low referencesthat rely on basic security, the increase hardly brings any advantages. The pension adjustment will One to one counted towards basic security – That means: There is more money only on paper, not in the wallet.
Disabled disability pension & additional earnings boundaries 2025
There are good news for pensioners who also work on the side: the Added earnings continue to rise in 2025:
- Full disability: 19,661 euros/year (+4.1 percent compared to 2024)
- Partial disability: 39,322 euros/year
In addition, the Reconciliation time (i.e. the period that is counted for the pension calculation) up to the age of 66 and 2 months extended. That means: whoever retires in 2025 gets higher pension claimsbecause longer insurance times are counted.
Long -term perspective: How is the pension going?
It remains a big topic Pension development in the next few years. According to current calculations, the pension level could be set up by 2038 45 percent sink. Without new reforms, either threaten either Higher contribution rates or a lower pension increase.
Previous political measures such as that failed pension package II of the federal government Should the pension level stabilize at 48 percent. Since no final solutions have yet been decided here, it remains unclear whether this can be financed in the long term.
Conclusion: increase in pension 2025 – plus remains, but deductions dampen the joy
The Pensions increased by 3.74 percent in 2025Which means a noticeable plus for many pensioners- however, according to deductions for health and long-term care insurance remain net Around 85 percent of the gross increase left over.
What does that mean specifically?
- More money, but less than 2024 – The pension increase is lower than in previous years.
- Health & nursing insurance contributions are increasing -This reduces net growth.
- If you retire again, you have to tax more – Only 15 percent remain tax -free.
- Disability pension benefits – Higher additional earnings limits and better crediting.
- Basic security recipients go away empty -handed – The increase is offset directly.
- Even if the increase is an important plus for many, the question remains how the pension develops in the long term. One thing is clear: Without new reforms, it will be more difficult to keep the pension level stable in the next few years.