... for work, taxes and insurance

The future remains uncertain. That much is certain. Apart from that, however, there will also be innovations and laws in the new year. These changes in the areas of work and taxes will then become important, as the North Rhine-Westphalia consumer advice center, among others, informs us.

Income threshold and compulsory insurance limit for health insurance increase

The compulsory insurance limit for statutory health insurance (GKV) will rise to €69,300 per year (€66,600 in 2023). Employees must have statutory health insurance up to the compulsory insurance limit. If you earn more than this amount, you can switch to private health insurance.

The income threshold for statutory health insurance will rise to €62,100 per year (€59,850 in 2023). Income up to this amount is subject to contributions; no contributions need to be paid for earnings above this amount.

Contribution assessment ceiling for unemployment insurance also increases

In unemployment insurance, the contribution assessment ceiling in the new federal states will rise to €7450 per month and to €7550 per month in the old federal states. The contribution rate of 2.6 percent, however, remains unchanged.

More funding and qualification allowances for training and further education

From April 1, 2024, the law on the reform of further training will bring a number of innovations that will benefit those seeking qualification and trainees. For example, a mobility allowance will make it easier for future trainees to accept training positions in more distant regions. In the first year of training, trainees receive financial support for two family trips home per month.

Young people who have not yet decided on a profession can be supported through a vocational orientation internship. The employment agencies and job centers are to take on this task and provide young people with targeted support and guidance in their career orientation and entry into vocational training.

An additional qualification allowance will also be introduced. It is intended for companies whose jobs are at risk due to structural change, but which can be retained through targeted further training. In such cases, employers and employees can make use of the training allowance. Regardless of the size of the company or the qualifications of the employees, the qualification allowance is to be paid to them as a wage replacement while they are released from work for a further training measure - in the amount of the short-time working allowance of 60 or 67 percent of their net salary. Conversely, companies do not pay a salary, but bear the training costs. Employers have the option of topping up the training allowance.

In order to receive the qualification allowance, a minimum of 120 hours of further training is required. The funding period is up to 3.5 years and also enables the acquisition of new qualifying professional qualifications at the same qualification level.

Private health insurance becomes more expensive

Many people with private health insurance are currently receiving mail from their insurer with premium increases, some of which are significant. Premiums for private health insurance (PKV) will rise by an average of around seven percent in 2024. Although not all policyholders will be affected, in some cases the increase may even be in double figures. Those who are unable to cope financially have a legal right to switch to a different tariff with similar or lower cover or to increase their excess. Under certain conditions, it is also possible to return to statutory health insurance, for example through family insurance or by taking up employment subject to compulsory insurance. Insured persons must generally be under 55 years of age.

Maintenance for separated children increases again

Separated fathers or mothers will have to pay their children more maintenance again in the new year. This is due to the new Düsseldorf table, which the family courts use as a guide when determining maintenance. This will be changed on January 1. The Düsseldorf table is published by the Düsseldorf Higher Regional Court.

From January 1, the minimum maintenance for underage children will then be EUR 480 instead of the previous EUR 437 until they reach the age of 6 (1st age bracket), EUR 551 instead of the previous EUR 502 for the period from the age of 7 to the age of 12 (2nd age bracket) and EUR 645 instead of the previous EUR 588 per month for the period from the age of 13 to the age of majority (3rd age bracket).

These amounts correspond to the requirement rates of the first income group (up to 2100 euros) of the Düsseldorf table. This increase in minimum maintenance also leads to a change in the rates of need in the second to tenth income group of the table. As in the past, they will be increased by 5 percent of the minimum maintenance in each of the second to fifth income groups and by 8 percent in each of the sixth to tenth income groups.

The necessary personal requirement to be left to the maintenance debtor is EUR 1200 (instead of the previous EUR 1120) for the non-employed maintenance debtor and EUR 1450 (instead of the previous EUR 1370) for the employed maintenance debtor. When calculating the necessary deductible, a needs rate of 563 euros corresponding to the citizen's allowance was taken into account.

The requirement rates for adult children will also be increased as of January 1, 2024. As in 2023, they will amount to 125% of the needs rates for the 2nd age bracket, i.e. EUR 688.75. The needs rate for students who do not live with their parents or a parent remains unchanged from 2023 at 930 euros (including 410 euros for rent).

The Düsseldorf table has no legal force per se, but has been used by courts as a benchmark and guideline for calculating maintenance, in particular child maintenance, since 1962.

Compensatory levy for non-employment of severely disabled persons increases

Promoting inclusion and offering more people with severe disabilities a job - that is the aim of the legislator. To make this work better, the compensatory levy will be tweaked from January 2024: companies in Germany with 20 or more workplaces are obliged to fill five percent of their jobs with severely disabled people or people of equal status. If they fail to do so, a compensatory levy is due. This is because companies that employ no or not enough severely disabled people also have no or fewer costs, for example to make workplaces accessible to disabled people. However, the compensatory levy is also intended to motivate companies to employ more severely disabled people - because they may then save this levy altogether.

In 2024, employers who do not employ a single severely disabled person despite being obliged to do so will have to pay a monthly equalization levy of 720 euros per unfilled position. This fourth scale of the equalization levy is being introduced for the first time. The previous fine for non-employment will be abolished.

The following rates apply depending on the employment rate:

140 euros for an employment rate of severely disabled people of three percent to less than five percent.
245 euros for an employment rate of severely disabled people of two percent to less than three percent.
360 euros for an annual average employment rate of more than zero percent to less than two percent.
720 euros for an average annual employment rate of zero percent.

The fourth stage of the equalization levy would be payable for the first time on 31 March 2025, when the levy for 2024 becomes due.

Additional contribution for statutory health insurance increases

The average additional contribution that all statutory health insurance funds levy on top of the general contribution rate of 14.6 percent will rise to 1.7 percent on January 1. Since 2019, employers and employees have once again been sharing the additional contribution equally (parity principle). However, the average increase does not per se mean that it will also increase for your health insurance fund. This is because the committees of the health insurance funds decide on the actual amount individually. Health insurance funds are not allowed to increase their supplementary contributions as long as they have more than one month's operating funds and reserves.

If the health insurance company increases the contribution, insured persons have a special right of termination until the end of the month in which the new additional contribution applies.

Car insurance often becomes more expensive

Many car insurance policies will become more expensive in 2024. According to the comparison portal Verivox, many providers have increased their premiums for the new year, in some cases significantly. On average, premiums are currently expected to be 14 percent higher than in the previous year. Increased claims ratios and higher repair costs are cited as the reason for the rise. In addition, almost six million motorists have been assigned to more expensive regional classes. Regional classes reflect the damage balances of regions in the liability and comprehensive insurance sector. The more damage caused, the more expensive it will be for individuals in these regions in the future.

It pays to compare rates regularly: if the insurance premium rises, policyholders then have a four-week right to cancel the policy. So if an insurance company only informs you of an increase in November, you can still cancel your car insurance until December.

Higher premiums for property insurance too

Premiums for household contents and buildings insurance are likely to rise again next year. One reason for this is that insurers' costs are still high due to the flood disaster in summer 2021. In addition, high inflation means that the cost of trades, materials and construction will be higher in the event of a claim. "Those affected should keep an eye on their insurance premiums and notice periods and, if necessary, switch providers after comparing conditions and premiums," recommends the North Rhine-Westphalia consumer advice center.

Renovate heating with Wohn-Riester

The "Heating Act" (Building Energy Act) comes into force on January 1, 2024. Owners of owner-occupied residential property will then have the opportunity to use credit from Riester contracts ("Wohn-Riester") to install a heat pump. Applications to use a Riester credit balance can be submitted to the Central Allowance Office for Retirement Assets (ZFA) of Deutsche Rentenversicherung Bund from January 1, 2024.