July 2025 news

From 1 July 2025, changes affecting key areas of life – from pensions and taxes to social welfare, labour law and digital accessibility – are coming into force in Germany. 

We have gathered all the most important information for you and explain how it will affect the lives of citizens, entrepreneurs and society as a whole.

Contents

Economy

Pension increase

From 1 July 2025, statutory pensions — gesetzliche Rente — will increase by 3.74%. For recipients of the standard pension, this means an average increase of 66.15 euros per month for pensioners with 45 years’ service. The increase affects more than 21 million people and is linked to the rise in the average wage in 2024.

The value of a single pension point is increasing from €39.32 to €40.79.

Due to the increase in pensions, around 73,000 pensioners will exceed the annual tax-free allowance (Grundfreibetrag) for the first time; in 2025, this stands at €12,096 for single people, and they will be required to file a tax return. This will particularly affect those retiring for the first time in 2025: from this year onwards, 83.5% of their pension will be treated as taxable income.

Tax return deadlines

The 2024 tax return must be filed by:

31 July 2025 — if you are applying on your own;
30 April 2026 - with the help of a tax adviser.

Remuneration of MPs

From 1 July, the salaries of members of the Bundestag will rise by 5.4% (an increase of €606 per month) — to €11,833 per month.

Social sphere

Pay rise

From July, hourly pay rates will increase for:

  • Nurses and specialists (Pflegefachkräfte) — €20.50.
  • Qualified assistants — €17.35.
  • Unskilled — €16.10.

Payments for the care of sick and elderly people

From July 1st, allowances for the care of the sick and elderly are being simplified: the allowances for short-term (Kurzzeitpflege) and respite (Verhinderungspflege) care are being combined.

Now the single annual budget will be €3,539 for everyone starting from Pflegegrad 2 — there is no longer any need to submit separate applications. The funds can be used for any of these types of care. The requirement of six months of prior care before becoming eligible for payments has also been abolished.

Requirements for digital resources

From 28 June, the BFSG act will enter into force, obliging digital resources — websites, apps, ATMs, online shops and other digital services — to be made accessible to people with disabilities. The requirements apply to both the public sector and businesses.

Tax-free income threshold for widow's pension recipients

From July, the tax-free income threshold for recipients of a widow’s or widower’s pension (Witwen-/Witwerrente) will rise from €1,038.05 to €1,076.86 per month. This means that recipients can earn more without their pension being reduced. If the recipient has children under the age of 18 (or under 27 if they are in full-time education), €220.19 is added to the amount for each child. Income in excess of these amounts is taken into account on a pro rata basis — 40% of the excess is deducted from the pension.

attachment exemption limits

From 1 July, the limits on the amount of income that is exempt from attachment for debtors (Pfändungsfreigrenzen) will be increased.

The new minimum monthly income that cannot be seized (Grundfreibetrag) is €1,555 (previously €1,491.75). An additional €585.23 is added for the first dependant, and a further €326.04 for each subsequent dependant. This means that people with debts will have more money left over for living expenses and supporting their families – the maximum protected amount is €3,444.39.

State regulation

Protecting children and young people from sexual abuse

From July, the UBSKM Act—the law «zur Stärkung der Strukturen gegen sexuelle Gewalt an Kindern und Jugendlichen» (for strengthening structures against sexual violence against children and adolescents)—comes into force, aimed at enhancing the protection of children and young people from sexual violence. Prevention and response programmes regarding cases of violence will be introduced in educational institutions for children. Requirements for online platforms to combat abuse will also be tightened, and the victim support system will be strengthened.

Neutrality Act

From 10 July, amendments to the Neutralitätsgesetz are being introduced in Berlin: female teachers will be permitted to wear religious headwear (such as a hijab), provided it does not disrupt school order.

Visa refusal appeal

From July, the voluntary appeal process for visa refusals is being abolished. Now, only the court route remains. It is expected that this will free up the resources of visa services and speed up visa issuance.

Logistics

Postal rates

DHL international shipping rate increases: small parcels up to 2 kg will increase in price to €6.99, with a maximum weight limit of 30 kg. The Premium International product is also being discontinued, insurance up to €50 is no longer provided, and conveniences such as QR codes and online postage for international shipments are being introduced.

Events

Berlin Fashion Week

Berlin Fashion Week from 30 June to 3 July.

Christopher Street Day

Christopher Street Day — 26th July, Berlin — LGBTQ+ parade. In recent years, between 350,000 and 500,000 people have taken part in it.

Music festivals

Music festivals — Parookaville, Jazzopen Stuttgart, Wacken Open Air.

Universiade

The World University Games (FISU World University Games), taking place from 16 to 27 July in the Ruhr region and Berlin, are student Olympic Games featuring participants from more than 150 countries.

Additionally

Cash without commission at Shell petrol stations

From 1 July, the agreement between Cash Group (Deutsche Bank, Commerzbank, Postbank, HypoVereinsbank and their subsidiaries) and Shell is coming to an end: customers of the major banks will no longer be able to withdraw cash without commission at Shell petrol stations. Previously, this service was available at more than 1,200 to 1,300 Shell stations across Germany, where it was possible to withdraw up to 1,000 euros per day free of charge.

Registration of electronic cash registers

Owners of electronic cash registers (bakeries, restaurants, shops) are obliged to register them digitally with the tax authorities by 31 July to combat tax evasion, but this could lead to increased costs for small businesses and potentially higher prices.

Calculation of contributions for parents towards long-term care insurance

For parents: from July, the employer will request children's data directly from the tax office to calculate care insurance contributions. The tax office will also notify the employer itself of any changes to the family composition, should any occur.

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