The German parliament finally approved on Thursday (2 July) the agreement promising a basic pension, which was reached by the CDU/CSU and SPD in mid-February.
The Bundesrat will vote on the law on Friday (3 July). If passed, the reform would benefit 1.3 million people with small pensions and would come into effect on 1 January 2021.
While pension payments could increase by up to €400, these are expected to be delayed, due to the means-testing required in the legislation.
Germany’s pension insurance expects to begin payments in July 2021, although the additional amount for the first half of the year will be paid retroactively.
At the beginning of the final debate, Labour Minister Hubertus Heil (SPD) urged members to vote in favour of the legislation, saying it offers “the chance to make our country better and fairer.”