Cannabis is set to become legal and a new deposit requirement is coming. In 2024, numerous reforms will come into force that will also affect the incomes of many citizens. Where will there be more money in the future and where will there be cuts?
In the new year, the minimum wage and citizens’ allowance will increase. However, going to a restaurant could become more expensive and the heating law comes into force. An overview of what consumers can expect in 2024:
Higher minimum wage
The minimum wage will rise from 12 to 12.41 euros per hour on January 1st.
Higher mini-job limit
As a result of the minimum wage increase, the upper limit for so-called mini-jobs also increases. This will increase from January 520 to 538 euros per month.
Citizens’ money is increasing significantly
The more than five million recipients of citizens’ benefit should receive an average of around twelve percent more money by January 1, 2024. For single people, this means an increase of 61 to 563 euros per month. Adults who live with a partner receive 506 euros. For children, the rates are between 357 and 471 euros, depending on age.
Income tax
The basic tax allowance, i.e. the income up to which no tax has to be paid, should increase. Originally the limit was supposed to be 11,604 euros; Finance Minister Christian Lindner (FDP) recently spoke of 11,784 euros. The child allowance is to be increased to 6,612 euros. However, due to the budget crisis, there could still be changes in relief.
Cuts in parental allowance
From April onwards, the parental allowance that mothers and fathers receive as a wage replacement benefit if they stay at home after the birth of a child will only go to couples who have a taxable annual income of a maximum of 175,000 euros. For single parents, the limit should be 150,000 euros. This should only apply to parents whose child is born on or after March 31, 2024.
Child allowance increases
Low-income families can receive more support from the state. The maximum amount of the child allowance will increase from 250 euros to up to 292 euros per month per child on January 1st.
More money for nursing staff
Employees in geriatric care will receive more money from May 1st. The minimum wage per hour increases to 19.50 euros for nursing staff, to 16.50 euros for qualified nursing assistants and to 15.50 euros for nursing assistants.
Trainee wages
The minimum salary for trainees in their first year of training increases by 4.7 percent to 649 euros per month. This affects training that begins on January 1st. Exceptions via collective agreement are possible.
Heating in new buildings
The first regulations of the Heating Act are taking effect: From January onwards, only heating systems that are based on 65 percent renewable energy may be installed in new buildings within new development areas. In many cases this would probably be a heat pump.
CO2 price
The CO2 price will rise to 45 euros per ton on January 1st, which will make refueling and heating with oil or gas more expensive.
Energy price brakes
The electricity and gas price brakes will no longer apply on January 1st. However, due to lower market prices, they no longer play a role for most energy consumers.
Normal VAT for gas and district heating
The normal VAT rate of 19 percent is due again on gas and district heating from March 1st. To ease the burden on consumers, the rate of 7 percent temporarily applied.
Germany ticket
It is still unclear how the price for the Germany ticket will develop in 2024. The 49 euros per month was intended as an introductory price. So the amount could increase over the course of the year.
Student ticket
Students are expected to benefit from a discounted Germany ticket from the summer semester of 2024: They will then be able to use local transport throughout Germany for 29.40 euros per month.
Care allowance increases
The care allowance for home care will be increased by five percent – depending on the level of care, this is 16 to 45 euros more per month. In outpatient care, the benefit amounts in kind will also be increased by five percent. From 2024, anyone who cares for relatives will be entitled to care support allowance for ten working days per person in need of care.
Nursing insurance increases surcharges
There is also relief for those in need of care in homes: the nursing care fund increases the percentage surcharges for people in fully inpatient care facilities. Depending on the length of stay in the nursing home, the increase is between five and ten percent.
Higher social security contributions for high earners
High earners should pay higher social security contributions. In the statutory pension and unemployment insurance, contributions of up to an amount of 7,550 euros per month in the west and 7,450 euros in the east are due. The contribution assessment limit for statutory health and nursing care insurance is to rise to 5,175 euros per month.
Cannabis should become legal
From April 1st, adults aged 18 and over will be allowed to possess 25 grams of cannabis in public spaces. In the private sector, up to 50 grams of home-grown produce should be allowed. Three plants can be grown privately. Cannabis clubs for collective cultivation should then be possible on July 1st. However, the necessary Bundestag resolution on these traffic light plans is still pending.
Aviation tax
Air travelers will have to prepare for rising ticket prices in the new year because the traffic light coalition wants to increase the aviation tax. Most of the details are still unclear.
E-car funding
The so-called environmental bonus to support the purchase of an electric car will no longer be raised in the new year. Applications could be submitted up to and including December 17th.
Black box for the car
From July 7th, newly registered cars in Germany must be equipped with a so-called event data recorder. Like the black box on airplanes, data should be stored that can be read out to clarify the situation in the event of an accident.
Winter tires
From October onwards, drivers will have to put winter and all-season tires with the Alpine symbol on their cars in winter weather. The so-called M+S tires (mud and snow) are then no longer permitted.
More expensive insurance
Contributions for building and car insurance will probably rise again. The NRW consumer advice center assumes at least ten percent.
Retirement age limit increases
At the turn of the year, the normal retirement age increases to 66 years. This applies to pension insured people who were born in 1958. For those born later, the retirement age increases in two-month increments, which means they have to work longer or accept reductions if they want to retire earlier.
Clinic Atlas
What services and what quality of treatment does a hospital offer? From April onwards, citizens will probably be able to read this information in an online portal. The so-called transparency directory is intended to be an interactive portal that provides understandable information about what is available at around 1,700 clinic locations nationwide.
E-prescription
From January onwards, contracted doctors will be required to issue e-prescriptions for prescription medicines. Insured people have three options for redemption: via app, paper printout or with their health insurance card.
Normal tax for restaurant visits
From January 1st, the normal VAT rate of 19 percent will apply again in the catering industry instead of the temporary 7 percent. So eating out could become more expensive.
Origin of the meat
Anyone who buys unpackaged meat at the counter or at the market has more clarity about its origin. Mandatory labeling will be extended to unpackaged meat from pigs, sheep, goats and poultry from February 1st. Previously it only applied to packaged meat and unpackaged beef.
Deposit on milk in plastic bottles
A deposit will also apply to milk or mixed milk drinks from January 1st if they are sold in plastic bottles.
Lids for drinks
In order to reduce waste in the landscape, loose caps on certain drinks will be banned from July 3rd. This applies to disposable packaging that is made entirely or partially of plastic – such as juice cartons or disposable PET bottles – with a volume of up to three liters.
End of child passports
Children’s passports can no longer be applied for from January 2024. The document, which is currently available for children under the age of twelve, is to be replaced by an electronic passport with a longer period of validity and the possibility of use for worldwide travel. This means higher costs for parents, because the electronic passport costs 37.50 euros and is more expensive than the previous children’s passport for 13 euros.
Breast cancer early detection
The upper age limit for free breast cancer screening for those with statutory health insurance will be raised from 69 to 75 years. The new regulation is to be implemented on July 1, 2024.
Renovation of the Riedbahn
Deutsche Bahn will begin the general renovation of the Riedbahn, which connects Frankfurt and Mannheim, on July 15th. The route will remain closed until December 14th. Trains are being diverted and there is replacement rail service.
Supply Chain Act
The supply chain law on compliance with human rights among suppliers applies to other companies: from 2024, companies that have at least 1,000 employees in Germany will also be affected. Previously the limit was 3000.
Toll obligation for smaller vans
As of July 1st, the toll requirement also applies to smaller vans weighing more than 3.5 tons. So far it works from 7.5 tons.
Inflation compensation premium
Employers can pay their employees the inflation compensation bonus of a maximum of 3,000 euros introduced in 2022 until the end of the new year. No taxes or duties are due on them.
Uniform charging cables
Manufacturers of smartphones, tablets and other electronic devices are required to use the uniform USB-C charging cable standard. The corresponding regulation applies from December 28, 2024.
Identification documents by mail
From November, obtaining ID documents will be easier. So-called sovereign documents can be sent by post for a fee upon request. This eliminates the need to go to the office to pick up an ID card.