German retirees will get an inflation-busting pension increase this year

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BERLIN (AP) — Germany's Cabinet on Wednesday approved a 4.57% rise in retirees' pensions from this summer, well above the current rate of inflation.

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This article was published 24/04/2024 (597 days ago), so information in it may no longer be current.

BERLIN (AP) — Germany’s Cabinet on Wednesday approved a 4.57% rise in retirees’ pensions from this summer, well above the current rate of inflation.

Rises in German pensions are linked largely to wage developments. Although inflation has subsided over the past year, the outcome of recent salary negotiations in various sectors has reflected demands for hefty pay rises following a big increase in living costs.

The increase will take effect on July 1, the first time since 2000 that pensions in Europe’s biggest economy have risen by more than the annual inflation rate, which in March stood at 2.2%, German news agency dpa reported.

FILE - Elderly women sit on a bench beside their walker in the sun at a park in Gelsenkirchen, Germany, Wednesday, April 5, 2023. Germany's Cabinet on Wednesday, April 24, 2024, approved a 4.57% rise in retirees' pensions from this summer, an increase that is well above the current rate of inflation. (AP Photo/Martin Meissner, File)
FILE - Elderly women sit on a bench beside their walker in the sun at a park in Gelsenkirchen, Germany, Wednesday, April 5, 2023. Germany's Cabinet on Wednesday, April 24, 2024, approved a 4.57% rise in retirees' pensions from this summer, an increase that is well above the current rate of inflation. (AP Photo/Martin Meissner, File)

An increase last year of 4.39% in the former West Germany and 5.86% in the less prosperous and formerly communist east completed efforts to bring pensions in the two parts of the once-divided country level more than 30 years after reunification.

Germany has a population of 84 million, including more than 21 million retirees.

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