Debate sharper rules - Government expects zero rounding for citizen's income in 2025
Recipients and recipients of Social Assistance should prepare for a possible zero-round in the coming year. A spokesperson for the Federal Labor Ministry in Berlin stated that as of early 2024, the requirement thresholds will have significantly increased compared to previous years. This was due to the high inflation in the preceding period. "We currently assume, given the currently declining price increase rates, that, based on the current situation, there may not be an increase as of January 1, 2025."
The calculations for this are currently being made according to a legally prescribed calculation method, the spokesperson said. Price and wage increases are factored in. The new thresholds will be announced in the fall. Therefore, there is no need for demands for a zero-round.
Twelve percent more
The amounts received by those entitled to social assistance increased significantly at the beginning of 2024 - for single individuals, for example, by 61 euros to 563 euros per month. In total, social assistance recipients received 12 percent more money from the state in 2024 than in 2023. For adults living with a partner or spouse, the amounts are 506 euros. For children and adolescents, the thresholds range from 357 to 471 euros depending on their age. Parallel to the increase in social assistance, the thresholds in social welfare and the amounts for personal educational expenses also increased by 12 percent.
- In response to the rising inflation, the CDU in Germany has proposed the concept of Citizen's Income as a potential solution to provide a safety net for the most vulnerable sections of society.
- The Federal Ministry of Labour is currently reviewing the proposed Citizen's Income, considering its impact on social work and potential funding from the federal budget.
- The FDP, a Berlin-based Party, has critiqued the Citizen's Income proposal, suggesting it may lead to inflationary pressures if not properly implemented.
- If implemented, Citizen's Income could potentially replace or supplement existing social assistance programs, such as the Nullround, which is a zero-round in Social Assistance.
- The proposed changes in social assistance thresholds, despite the potential for a zero-round, will still result in an increase in income for many citizens, as seen with the recent 12% hike in social assistance amounts.
