Factsheet for measure
DE-2023-1/2883
–
Updated
– measures in Germany
Introduction of a citizen's benefit
Einführung eines Bürgergeldes
Background information
With the war in Ukraine, energy and food prices have been significantly rising. The third relief package, which has a volume of around €65 billion, aims to reduce the burden on citizens caused by the increased energy prices and rising inflation. The citizen's benefit is part of third relief package. In force from 1 January 2023, it replaced the unemployment assistance II (Arbeitslosengeld II) - commonly known as HARTZ IV. The citizen's benefit is provided to ensure a minimum subsistence level worthy of a human being in accordance with Article 1, Paragraph 1 of the Basic Law and regulated by the Social Code (SGB) Book II.
Content of measure
Citizen's benefit is paid to people who are able to work and cannot cover their living expenses with their own income. It serves to ensure a decent minimum standard of living. When an application is submitted, the applicant's individual needs are first determined. This is primarily done by taking into account the persons daily living needs, the costs of accommodation and any additional needs. Any existing income and personal assets are balanced against these needs. However, time limits during which certain personal assets are taken into account by the job centres calculating the benefit were extended. Cost of rent will also be borne fully during the first 12 months. In addition, the time period during which citizen benefits can deny job offers made by the job centre was prolonged.
Apart from the mentioned changes, the regular benefit was also increased as of 1 January 2023. The standard rates per month vary according to the living situation of the targeted person:
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Single person/ single parents receive €502
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Adult partners receive €451 each
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Full-age persons without their own household and/or are aged between 18-24 years receive €402
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Children aged 14-17 years and minors with a partner of full age receive €420
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Children aged 6-13 years receive €348
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Children aged 0-5 years receive €318
Finally, the new benefit requires recipient's participation in training courses and also offer coaching sessions in order to support their integration into the labour market.
Updates
The following updates to this measure have been made after it came into effect.
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02 February 2024
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A monthly citizens' allowance bonus of €75 was also introduced on 1 July 2023 - for further training that is not aimed at a vocational qualification. This is now to be abolished again. On 8 January 2024, the Federal Cabinet adopted a so-called "formulation aid" for a draft of the Budget Financing Act. The Bundestag approved the law on 2 February 2024. However, until the law comes into force, those affected who have already started a subsidised measure will continue to receive the bonus until the measure is completed.
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08 January 2024
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On 8 January 2024, the Federal Cabinet decided on a further sanction regulation in the formulation aid for the draft of the Budget Financing Act: in future, job centres will be able to completely cancel the citizen's allowance for a maximum of two months if they persistently refuse to take up reasonable work. The Bundestag approved the law on 2 February 2024.
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01 January 2024
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Taking into account price and wage developments as well as increased inflation, the Citizen's Income was increased to the following new standard rates as of 1 January 2024:
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Single person/ single parents receive €563 Euro (+€61)
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Adult partners receive €506 Euro (+€55)
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Full-age persons without their own household and/or are aged between 18-24 years receive €451 Euro (+€49)
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Children aged 14-17 years and minors with a partner of full age receive €471 Euro (+€51)
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Children aged 6-13 years receive €390 Euro (+€42)
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Children aged 0-5 years receive €357 Euro(+€39)
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01 July 2023
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Since 1 July 2023, new facilitations and possibilities of support for people entitled to citizen's allowance are provided.
For further training leading to a vocational qualification, beneficiaries will receive a further training allowance of €150 per month.
With regard to income, some other sources of income are no longer taken in account. Young people retain income from pupil and student jobs and income from vocational training up to the mini-job limit (currently €520). Income from pupil jobs during holidays is not taken into account at all. In addition, maternity benefit will no longer be counted as income.
The previous integration agreement has been replaced by a cooperation plan.
The regulations on absence from the place of work were replaced by new regulations on accessibility.
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Use of measure
As of February 2023, around 5.4 million people were receiving benefits under SGB II. According to figures from the Federal Employment Agency of September 2023, around 5.5 million people were receiving benefits under SGB II. The latest data can be found on the statistics page of the [Federal Employment Agency](https://statistik.arbeitsagentur.de/DE/Navigation/Statistiken/Fachstatistiken/Grundsicherung-fuer-Arbeitsuchende-SGBII/Aktuelle-Eckwerte-Nav.html]. It is estimated that the new benefit will result in an annual additional expenditure of around €5 billion. The largest share of this is covered by the federal government (about €4.5 billion). The remaining additional expenditure is distributed among the states (Länder) and municipalities, as well as the Federal Employment Agency.
Target groups
Actors and funding
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Actors
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Funding
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National government
Local / regional government
Public employment service
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Local funds
National funds
Regional funds
Other
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Consulted
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Consulted
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Form
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Direct consultation outside a formal body
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Direct consultation outside a formal body
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Social partners' role in the
implementation, monitoring and assessment phase:
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Unknown
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Main level of involvement: Peak or cross-sectoral level
Involvement
Social partners participated with other interested groups in an oral hearing of the competent committee of the national parliament (Bundestag).
Views and reactions
The German Trade Union Confederation (DGB) supported the plans for the new citizen's benefit and pointed out that the funds in the 2023 budget would, however, have to be significantly increased. Moreover, according to the DGB, the gap between wages and the citizen's benefit recipients is preserved.
The Confederation of German Employers' Associations (BDA) takes a different view, however, saying that it is no longer worthwhile to work one's way up. In addition, employers fear that the job centres will not be able to implement the new scheme swiftly because the new requirements were too complicated.
Sources
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06 May 2022: German Bundestag compilation of material (Deutscher Bundestag Materialzusammenstellung)
(www.bundestag.de)
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07 November 2022: German Bundestag hearing (Deutscher Bundestag Anhoerung
(www.bundestag.de)
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01 December 2022: Statistics of the Federal Employment Agency (Statistik der Bundesagentur fuer Arbeit
(statistik.arbeitsagentur.de)
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16 December 2022: Citizen's benefit law (Buergergeld Gesetz)
(www.bgbl.de)
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13 January 2023: BMAS_Questions and Answers on the citizen's benefit (BMAS_Fragen und Antworten zum Buergergeld)
(www.bmas.de)
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01 July 2023: Further improvements in the citizen's income (Weitere Verbesserungen beim Bürgergeld)
(www.arbeitsagentur.de)
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19 February 2024: Federal Government: Questions and answers on the Citizen's benefit
(www.bundesregierung.de)
