overview
People in Germany will face many changes in 2024. For example, the minimum wage, the child allowance and citizen’s allowance are increasing. In some areas, life is becoming more expensive. An overview.
At the turn of the year, many reforms and changes to the law come into force that have an impact on everyday life. What will change for consumers in 2024.
Citizen’s money
As of January 1st, more than five million citizens’ benefit recipients will receive an average of around twelve percent more money. For single people the rate increases by 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.
Child allowance increases
The maximum amount of the child allowance increases from 250 euros to up to 292 euros per month and child. This is intended to provide families with low incomes in particular with more support from the state.
Lower Income limit for parental allowance
In contrast, the income limits for parental allowance will decrease in 2024. Previously, parents with a joint taxable income of up to 300,000 euros and single parents with earnings of up to 250,000 euros could apply for parental allowance. From April 2024, the income limit will be reduced in two steps, initially to an annual income of 200,000 euros, and from April 2025 to 175,000 euros for couples. For single parents, 150,000 euros will apply from April.
Longer claim Child sickness benefit
From 2024, working parents who have statutory health insurance will be entitled to up to 15 days of child sickness benefit instead of the previous ten. For single parents there will now be 30 working days instead of the current 20. The Corona special regulation, which allowed up to 30 days per parent, is expiring.
More pay for Low-income earners and trainees
The minimum wage will rise from twelve to 12.41 euros per hour next year. A further increase to 12.82 per hour is planned for 2025. The minimum wage increase also increases the upper limit for so-called mini-jobs from 520 to 538 euros per month. 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.
Higher Basic allowance
The income up to which no tax has to be paid, the basic tax allowance, will be increased from 10,908 euros to 11,784 euros. The child allowance should also increase: from 6,024 to 6,612 euros per child. The top tax rate of 42 percent is only due in 2024 from taxable income of 66,761 euros; previously it was 62,810 euros.
Care allowance and Care allowances climb
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. Anyone who cares for relatives is now entitled to care support allowance for ten working days per person in need of care every year. 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.
Contribution assessment limits increased for high earners
High earners should pay higher social security contributions. Contributions to statutory pension and unemployment insurance should be due up to an amount of 7,550 euros per month in the west and 7,450 euros in the east. The contribution assessment limit for statutory health and nursing care insurance is to rise to 5,175 euros per month.
Retirement age at 66 years old
The regular retirement age will rise to 66 next year. 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.
New heating rules for new buildings
When it comes to energy, consumers have to prepare for new regulations and costs that will continue to be high. The first regulations of the Heating Act will take effect in the new year: 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.
Higher CO2 price
The CO2 price will rise to 45 euros per ton on January 1st. This makes refueling and heating with oil or gas more expensive. Due to the tight budget situation, the electricity and gas price brakes will also be abolished on January 1st. Recently, they no longer played a role for most energy consumers due to significantly lower market prices.
Operation of Balcony power plants relieved
The installation of balcony power plants becomes easier at the beginning of the year. In the future, registration in the Federal Network Agency’s market master register should be sufficient. The devices can also be put into operation immediately; the network operator is responsible for replacing the electricity meter.
E-car funding is no longer available
In the auto sector, the energy transition could be slowed down in the new year. Because the so-called environmental bonus to support the purchase of an electric car is no longer available. Applications could only be submitted up to and including December 17th.
VAT in restaurants is back at 19 percent
Visits to restaurants could become more expensive next year. From January 1st, the regular VAT rate of 19 percent will apply again in the catering industry instead of the temporary seven percent.
E-prescription mandatory
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.
milk in plastic bottle with deposit
A deposit will also apply to milk or mixed milk drinks from January 1st if they are sold in plastic bottles.
End for him Children’s passport
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.