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Germany Advances Pension Adjustments with Reimbursements and Upcoming Benefit Hike

Reimbursements for overpaid care contributions are underway as retirees prepare for a 3.74% pension increase starting July 2025.

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Overview

  • Deutsche Rentenversicherung (DRV) has started reimbursing overpaid care insurance contributions to eligible parents with two or more children under 25.
  • Statutory pensions will increase by 3.74% on July 1, 2025, benefiting approximately 21 million retirees and boosting their purchasing power.
  • Retroactive deductions for the 0.2 percentage point care insurance increase from January 2025 will be applied to July payments.
  • Health insurance contributions rose by 0.8 percentage points in March 2025, reducing net pensions by 0.4% for retirees.
  • From August 2025, pensions will reflect a standardized deduction regime, including half of the new health insurance contribution and the full care insurance contribution.