How would you calculate a pension multiplier

Average wage

Updated on by Stefan Banse

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The average wage is a computational variable used by social insurance and denotes the average income of all insured persons subject to social insurance. The development of the average gross wages and salaries per employee is recorded annually by the Federal Statistical Office and determined by the federal government as the average wage.

Average salary for determining pension points

The average pay is used in particular to determine the pay points (pension points) for calculating the statutory pension. Because the earnings points correspond to the relation between the personal annual salary and the average salary. A salary exactly the same as the average salary leads to exactly one salary point. For example, if the personal income that is subject to pension insurance is only 75 percent of the current average wage, you will receive 0.75 points.

Conversion factor for wages in the east

Since the salary level in the new federal states is still lower today than in the old federal states, an official conversion factor is set annually in order to make the lower salaries in the east and in the west comparable. On the basis of these conversion factors, a (fictitious) average wage east can be determined with the aid of the average wages. For example, the average wage in the West in 2020 was 40,551 euros. The conversion factor for salaries in the east was 1.07 in 2020. Therefore, an average wage in the new federal states of 37,898 euros (40,551 divided by 1.07) is assumed for 2020. This conversion factor is relevant for determining the earnings points east, the amount of which is based on the average earnings adjusted by the conversion factor for east wages. In 2020, an East salary of 37,898 euros resulted in an East pay point, a West salary of 40,551 euros in the same year resulted in a West pay point. With the pension calculator you save yourself these conversions and can determine the amount of your expected pension. The table with the annual conversion factors is listed in the Sixth Social Security Code, just like the table on average wages.

Table of average pay in accordance with SGB VI Appendix 1 and Appendix 10

The average wage was
yearannually west
(Appendix 1 SGB VI)
monthly west
(with 12 salaries)
Conversion factor
(Appendix 10 SGB VI)
annually eastmonthly east
(with 12 salaries)
19513,579 DM298 DM1,05023,408 DM284 DM
19523,852 DM321 DM1,06173,628 DM302 DM
19534,061 DM338 DM1,04583,883 DM324 DM
19544,234 DM353 DM1,01854,157 DM346 DM
19554,548 DM379 DM1,06564,268 DM356 DM
19564,844 DM404 DM1,10294,392 DM366 DM
19575,043 DM420 DM1,10814,551 DM379 DM
19585,330 DM444 DM1,09924,849 DM404 DM
19595,602 DM467 DM1,08385,169 DM431 DM
19606,101 DM508 DM1,14515,328 DM444 DM
19616,723 DM560 DM1,23745,433 DM453 DM
19627,328 DM611 DM1,31565,570 DM464 DM
19637,775 DM648 DM1,36675,689 DM474 DM
19648,467 DM706 DM1,45685,812 DM484 DM
19659,229 DM769 DM1,54625,969 MDN497 MDN
19669,863 DM822 DM1,60186.157 MDN513 MDN
196710,219 DM852 DM1,59276,416 MDN535 MDN
196810,842 DM904 DM1,64056,609 M.551 M.
196911,839 DM987 DM1,73216,835 M570 M.
197013,343 DM1,112 DM1,88757,069 M.589 M.
197114,931 DM1,244 DM2,04907,287 M607 M.
197216,335 DM1,361 DM2,17057,526 M.627 M.
197318,295 DM1,525 DM2,36377,740 M.645 M.
197420,381 DM1,698 DM2,54518,008 M.667 M.
197521,808 DM1,817 DM2,62728,301 M.692 M.
197623,335 DM1,945 DM2,73448,534 M711 M.
197724,945 DM2,079 DM2,83438,801 M.733 M.
197826,242 DM2,187 DM2,89239,073 M.756 M.
197927,685 DM2,307 DM2,97349,311 M.776 M.
198029,485 DM2,457 DM3,12089,448 M.787 M.
198130,900 DM2,575 DM3,16349,768 M814 M.
198232,198 DM2,683 DM3,214710,016 M.835 M.
198333,293 DM2,774 DM3,262710,204 M.850 M.
198434,292 DM2,858 DM3,288510,428 M.869 M.
198535,286 DM2,941 DM3,312910,651 M.888 M.
198636,627 DM3,052 DM3,296811,110 M.926 M.
198737,726 DM3,144 DM3,254811,591 M966 M.
198838,896 DM3,241 DM3,238112,012 M.1,001 M
198940,063 DM3,339 DM3,233012,392 M1,033 M.
199041,946 DM3,496 DM2,709015,484 M1,290 M
199144,421 DM3,702 DM1,723525,774 M.2,148 M.
199246,820 DM3,902 DM1,439332,530 M.2,711 M
199348,178 DM4,015 DM1,319736,507 M.3,042 M.
199449,142 DM4,095 DM1,268738,734 M3,228 M
199550,665 DM4,222 DM1,231741,134 M3,428 M.
199651,678 DM4,307 DM1,220942,328 M.3,527 M.
199752,143 DM4,345 DM1,208943,133 M3,594 M
199852,925 DM4,410 DM1,211343,693 M3,641 M
199953,507 DM4,459 DM1,205444,389 M.3,699 M
200054,256 DM4,521 DM1,203045,101 M.3,758 M.
200155,216 DM4,601 DM1,200346,002 M.3,833 M.
200228.626 €2.386 €1,197223.911 €1.993 €
200328.938 €2.412 €1,194324.230 €2.019 €
200429.060 €2.422 €1,193224.355 €2.030 €
200529.202 €2.434 €1,182724.691 €2.058 €
200629.494 €2.458 €1,182724.938 €2.078 €
200729.951 €2.496 €1,184125.294 €2.108 €
200830.625 €2.552 €1,185725.829 €2.152 €
200930.506 €2.542 €1,171226.047 €2.171 €
201031.144 €2.595 €1,172626.560 €2.213 €
201132.100 €2.675 €1,174027.342 €2.279 €
201233.002 €2.750 €1,178528.003 €2.334 €
201333.659 €2.805 €1,176228.617 €2.385 €
201434.514 €2.876 €1,166529.588 €2.466 €
201535.363 €2.947 €1,150230.745 €2.562 €
201636.187 €3.016 €1,141531.701 €2.642 €
201737.077 €3.090 €1,137432.598 €2.717 €
201838.212 €3.184 €1,133933.700 €2.808 €
201939.301 €3.275 €1,084036.256 €3.021 €
202040.551 €3.379 €1,070037.898 €3.158 €
202141.541 €3.462 €1,056039.338 €3.278 €

(MDN = Mark of the German Central Bank, 01.08.64 to 31.12.67; M = Mark of the German Democratic Republic (also Mark of the GDR) 01.01.68 to 30.06.90)

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Last update on April 11th, 2021

The pages of the topic "Old Age Pension" were last editorially checked on April 11th, 2021 by Stefan Banse. They are all up to date.

Previous changes on April 3rd, 2021

  • 04/03/2021: Store the pension values ​​valid from July 1, 2021 in the pension calculator
  • November 15, 2020: Integration of the basic pension, which will apply from 2021, into the pension calculator and the corresponding texts.
  • November 15, 2020: Consideration of new income thresholds for 2021 and updated average wages
  • Editorial revision of all texts in this subject area