German Pension System to See Major Changes in 2026
The German pension system is set to see significant changes in 2026, with a substantial increase in the required earnings for a pension point. This shift, driven by the new Social Security Contribution Rates Regulation, will impact millions of employees.
The pension value itself rose by a modest 3.74 percent in July 2025. However, the required earnings for a pension point are set to increase by a notable 10.32 percent in 2026, compared to 2024. This means employees will need to earn more to secure the same pension contribution point in the future.
In 2026, earning a pension point will require an annual gross income of 51,944 euros or 4,328 euros per month. This is a significant jump from the 47,085 euros required in 2024. Few employees can negotiate such a substantial salary increase in just two years, making this a significant change for pensions.
The new regulation will determine future pension points based on individual gross annual income divided by the average gross annual income of all insured persons, currently €50,493 nationwide. This change, a 10.32 percent increase in required earnings for a single contribution point, is expected to cause a real pension shock in 2026, with wage development in 2024 already influencing key figures for social security.
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