In 2025, there are no plans to elevate the citizen's income.
At the start of 2024, the government significantly raised the Citizen's Income, mainly due to high inflation. However, Labor Minister Heil warns that the over 5.5 million people receiving this benefit shouldn't expect a rise in their payments for 2025. Heil also calls for a higher minimum wage.
The Citizen's Income, received by over 5.5 million adults and children, might not see an increase in their regular monthly payments for 2025. In a Bundestag government meeting, SPD politician Hubertus Heil, the Federal Minister of Labor, mentioned that due to high inflation earlier that year, their monthly benefits jumped up to 61 euros. The basic monthly rate for a single adult is currently 563 euros, including rent and heating costs.
The calculation formula for the Citizen's Income considers price increases. The current situation has hampered anticipated increases in the standard monthly payments, which increased by 61 euros in January 2024.
Calling for Increased Minimum Wage
Moving on to the minimum wage, Heil aims for substantial increases in 2025, following German law and the European Minimum Wage Directive. The Directive targets around 60% of a median wage as the minimum wage. In Germany, this would be approximately 14 euros.
Healthy debates are occurring around Chancellor Olaf Scholz's initiative to gradually increase the minimum wage to 15 euros. Employers fiercely criticized this suggestion, accusing him of breaking a taboo. Heil supports the Chancellor's proposal, stating that the Minimum Wage Commission must "once again make uniform decisions" in the future, in agreement with the Chancellor.
The Minimum Wage Commission is responsible for adjusting the minimum wage every two years. After their controversial decision last June, they bumped up the minimum wage by 41 cents for this and the next year, making it 12.41 euros.
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In response to the rising cost of living, Federal Minister of Labor Hubertus Heil advocates for increased minimum wage in line with German law and the European Minimum Wage Directive. Despite the government's decision to maintain the Citizen's Income payments in 2025, Heil emphasizes the need for a higher minimum wage. The German Bundestag recently approved a minimum wage increase of 41 cents by the Minimum Wage Commission, but Heil calls for more substantial adjustments in the future.
Source: www.ntv.de
