Shocking news for millions of Germans in 2026: equal labor, reduced pension benefits
The federal government has announced a significant adjustment to the calculation factors for social security, effective from September 9, 2025. This change, which has been reported by the advisory portal rentenbescheid24, is set to cause a pension shock in 2026.
The increase in calculation factors is a result of the 5.16 percent wage development in Germany in 2024, excluding workfare with compensation for additional expenses. This wage development will underlie the social security calculation factors in 2026, leading to a significant increase in the pension points required for contributions.
The new ordinance, which is the responsibility of the Federal Ministry of Labor and Social Affairs (BMAS), has led to an increase in calculation factors from 2024 to 2026 by 10.32 percent. This means that the pension will be more expensive than ever before. In 2024, the value was 47,085 euros, compared to 51,944 euros in 2026.
The increase in calculation factors will result in millions of employees receiving less pension for the same work in the future. For instance, to get one contribution point in the statutory pension insurance in 2026, an individual must earn 51,944 euros a year or 4,328 euros gross per month.
The experts at the portal rentenbescheid24 have stated that the 10.32 percent increase in calculation factors is a real pension shock, as few employees can negotiate more than a 10 percent salary increase in two years. They have also noted that the pension point in 2026 will be more expensive than ever before.
The Social Security Calculation Factor Ordinance, effective from September 9, 2025, will affect millions of employees. The BMAS, the responsible authority, is yet to provide further details on how this change will be implemented and managed.
It is essential for employees to understand the implications of this change and plan accordingly to ensure their retirement security. The advisory portal rentenbescheid24 provides valuable resources and information for those seeking to understand this complex issue better.
Read also:
- Duty on cotton imported into India remains unchanged, as U.S. tariffs escalate to their most severe levels yet
- Steak 'n Shake CEO's supposed poor leadership criticism sparks retaliation from Cracker Barrel, accusing him of self-interest
- President von der Leyen's address at the Fourth Renewable Hydrogen Summit, delivered remotely
- Unveiling Innovation in Propulsion: A Deep Dive into the Advantages and Obstacles of Magnetic Engines
