The new coalition government under Chancellor Friedrich Merz is set to implement significant changes to the widow's pension system in Germany, aiming to improve benefits and address labor shortages.

Currently, over five million people in Germany receive survivor's pensions, which are designed to support dependents after the death of an insured individual.

There are two types of survivor's pensions available: the small widow's pension, which is 25% of the deceased's pension, and the large widow's pension, which is 55%.

This social benefit is crucial for securing the livelihood of dependents, and the government is looking to enhance these pensions to encourage employment among beneficiaries.

The planned improvements to the widow's pension system include raising income allowances to incentivize widows and widowers to engage in paid work.

Starting in July 2025, the monthly earning threshold for widows and widowers will increase from €1,038.05 to €1,076.86, meaning income will only affect the pension if it exceeds this new threshold.

If a widow's or widower's income is below this new allowance, they will receive the full pension, although remarriage may impact their eligibility.

Currently, all forms of income are considered when calculating widow pensions, but no income is counted during the first three months following the death of a spouse.

The Federal Ministry of Labor and Social Affairs has confirmed that these changes are part of the coalition's strategy to improve income-earning opportunities for beneficiaries.

In addition to the income threshold adjustment, a uniform pension increase of 3.74% will take effect in July 2025, benefiting all recipients of widow's pensions.

Details regarding the specific incentives and timing for these new measures are still being finalized by the Ministry of Labor and Social Affairs.

The coalition agreement also includes a review of a new accounting system for widow pensions, which aims to enhance earnings opportunities for recipients.