From January 2021, new regulations worth knowing about will come into force in Germany. Here’s what will change.
Increase of the minimum wage and salary for interns
From January 2021, the minimum wage will increase from EUR 9.35 to EUR 9.50 per hour. It should be remembered that in Germany the minimum wage (der Mindestlohn) has been in force since January 1, 2015 and was then EUR 8.50 per hour. Two years later it increased to 8.84 euros, in 2019 to 9.19 euros an hour and in 2020 to 9.35 euros an hour. And this is just the beginning, the minimum wage will continue to increase until it reaches EUR 10.45 per hour in 2022.
Salaries for interns will increase for the second time. From 2021, they will receive a minimum wage of 550 euros per month. The next increase is planned for 2022 and will amount to EUR 585, and from 2023 it will increase to EUR 620.
Growth of Hartz IV
From January 2021, the amount of Hartz IV benefit will increase. The Hartz IV hike in 2021 will be higher than expected. People living alone will receive EUR 446 (EUR 14 more than before). The rate for youth aged 14-17 will increase by as much as EUR 45 to EUR 373, and for children up to EUR 283 instead of EUR 250. The rate for children between the ages of 6 and 13 will increase by EUR 1 to EUR 309. Meanwhile, the standard rate of Hartz IV for spouses and partners in the future will be € 401. People under 25 living with their parents will receive € 357 per month.
Kindergeld and Kinderfreibetrag increase
The Kindergeld child benefit will increase by EUR 15 per child from January 1, 2021, while the tax-free amount for having children, i.e. Kinderfreibetrag, will increase by EUR 570. You do not know when the Kindergeld child benefit will be paid in each month of 2021? Here are the specific dates when the transfers will be sent to the beneficiaries’ account.
Wohngeld Housing Allowance Increase
The Wohngeld Housing Supplement is not a grant from the state, but a grant to which everyone who meets certain conditions is entitled. From January 2021, Wohngeld will increase by around EUR 15 per month, and for each additional family member we will receive an additional EUR 3.60.
Increase of Grundrente or the basic pension
According to the Federal Ministry of Social Affairs, from January 1, 2021, approximately 1.3 million people will benefit from the new Grundrente pension , 70 percent of whom are women. The right to the full benefit paid from the beginning of 2021 will apply after working for 35 years of contribution (including periods spent on raising children or caring for relatives). People with at least 33 years of contributions will receive a smaller supplement. The introduction of the basic pension is intended to help people who currently receive a small retirement pension and people at risk of poverty in their old age. You can find out about the income limits HERE .
Increase in RTV subscription
From January 1, 2021, the RTV subscription in Germany is also expected to increase from EUR 17.50 to EUR 18.36 per month, but Saxony-Anhalt is blocking the increase. ARD and ZDF intend to file a complaint with the Federal Constitutional Court on this matter.