Status: December 31, 2021 12:30 p.m.
Taxes, minimum wages, alimony: in the new year a lot will change in terms of finances. Where can money be saved – and where are more expenses lurking?
The New Year could bring some improvements, especially for low-income households. Because not only will the minimum wage and some social benefits increase somewhat, but the tax-free allowance limits will also be revised upwards.
For example, the minimum wage will be increased from the current EUR 9.60 to EUR 9.82. However, shortly after his inauguration, Labor Minister Hubertus Heil (SPD) announced that he wanted to keep a key election promise made by his party and raise the minimum wage again sharply – to twelve euros per hour. For a full-time position that would mean around 250 euros more net income per month.
Households with little money will be strengthened somewhat
The unemployment benefit II rates – called Hartz IV -, the housing benefit and the child allowance are each increased by a few euros; this should make it easier to cope with the steadily rising cost of living. However, social organizations criticize that the increases of a few euros are far too tight.
There is also a little more maintenance for children with separated parents. The so-called Düsseldorf table has been adjusted: The minimum maintenance for children up to six years of age will then be 396 euros. So far that was 393 euros. The rate increases with the income of the dependent parent. According to the Federal Ministry of Finance, no increase is planned for child benefit.
Electricity and gas remain rather expensive
One change that is likely to affect almost all German households is the rise in energy and electricity prices. Last year, energy prices in Germany rose by an average of 35 percent; this is what the comparison portal Verivox has calculated.
The energy market is expected to calm down somewhat in the new year, but the CO2 tax will rise again to the then final 30 euros per tonne. Energy suppliers are likely to pass this money on to consumers. The only consolation is the EEG surcharge. This subsidy for sustainable energies will decrease from the current 6.5 cents per kilowatt hour to 3.723 cents from January 2022.
Basic income tax allowance will be increased
A little relief can also be expected from income tax. Because, like every year, the basic tax-free allowance is being increased a little: for single people it rises to 9,984 euros; only when this limit is exceeded is the annual income taxable. That means an increase of 240 euros compared to 2021. Married couples are entitled to 19,968 euros, 480 euros more than before.
Something is also happening in terms of provision: the tax-free contributions for a basic old-age provision are being revised upwards. Anyone who pays into the Rürup pension or the statutory pension fund can state up to 25,639 euros as special expenses at the tax office as a single person, couples twice as much.
Sustainable investments are made easier
Life insurance may be an option for people looking to put even more money into their retirement plans. Here the guaranteed interest rate drops to 0.25 percent, so that such a model is unlikely to be worthwhile.
In this respect, it is worth switching to classic financial products. From August onwards, banks have the duty to actively address their customers on the topic of sustainability and to present them with offers from the green finance sector, which at the same time also meet the requirements for security, returns and liquidity.