The Jewish Claims Conference, which helped negotiate the deal with the government, said the new deal passed Thursday means some 40,000 Holocaust survivors will soon be able to receive benefits back-dated to 1997.
That's the year Germany began recognizing work in ghettos as eligible for pension payments. Until now, recipients have only received payments backdated to four years from when they applied.
During World War II, the Nazis made widespread use of Jews, primarily non-Germans, in ghettos as laborers in exchange for food or meager wages.
The proposal was introduced by Labor Minister Andrea Nahles, who has promised payments would be made "swiftly and efficiently."