Wohngeld increase in Germany. Life in Germany. Germany is known for its generous benefits that greatly improve the living conditions of its residents. Many of these benefits also support people who work and earn a living. One such benefit is the housing allowance called Wohngeld. On August 13, the Federal Cabinet decided to raise this allowance. Starting January 1, the housing allowance will increase by 15 percent. The changes now need approval from the Federal Council.
Wohngeld increase in Germany in 2025
By law, the monthly rent subsidy for low-income citizens in Germany is updated every two years to match changes in prices and rents. The current 15 percent increase is based on the rising cost of living. The exact amount of the housing subsidy depends on factors like household size. Right now, the average rate in Germany is about €370 per month. Starting in 2025, this will go up to €400 per month.
“People are spending much more on rent, energy, and everyday items today. To keep providing long-term relief, we’re raising the monthly housing allowance,” said Federal Building Minister Klara Geywitz (SPD).
Read also: Is your income enough for German citizenship? Here’s how to find out
Who is entitled to housing benefit (Wohngeld)
- Pensioners with low pensions
- Low-income earners (Couples and Singles)
- Students, if they are entitled to BAföG
- Nursing home residents
The key factors for determining the housing allowance are the number of household members, the amount of rent, and the family’s income. For instance, if a grandmother lives in the household, her pension and any maintenance payments for single parents are considered. Since the income limit was raised in 2024, even people with average incomes can qualify for the supplement.
With rents expected to keep rising in the coming years, the federal government has greatly expanded the number of people eligible for housing benefits. According to earlier reports, the ministry anticipates that an additional 1.9 million households across the country will qualify for housing benefit next year.
Read also: Germany’s new citizenship law: What you need to know about dual citizenship
Height of living space – calculator
An online calculator is available that can help determine if you qualify for the allowance and estimate your monthly benefit amount. You can access the calculator by clicking here: Wohngeldrechner
In the calculator you need to fill in the following fields:
- Number of household members: Enter the number of all members in your household
- Number of household members to include: This includes spouses, civil partners, parents and children, other family members.  Household members who are already receiving  various benefits are excluded from the calculation.
- Combined monthly income: How much do all household members earn together gross? You’ll need to be able to prove this when applying for Housing Benefit
- Gross monthly rent: Here we enter the rent burden or, in the case of a private apartment, the monthly burden, e.g. a loan installment.
- Rent level: What is the rent level of your district or city? This is important because for 1,000 euros you can rent significantly more apartments in a small town than in Munich or Hamburg.
After entering all the necessary information, simply click the “Calculate” button. This will show you whether you’re eligible for housing benefit and how much you could receive.