After 18 years, Hartz IV is over. At the turn of the year 2022/2023, citizen income replaced the previous support for the unemployed in Germany. This overview and five sample invoices show what the reform will bring to recipients.

The citizen’s income brings advantages, among other things, when it comes to job placement. The former so-called mediation priority was canceled on January 1st. Background: Until now, job centers have often placed unemployed people in helper jobs, which they then did not do for long. The new requirements place more emphasis on further training and the acquisition of a vocational qualification.

The rates increase by around 50 euros compared to the previous Hartz IV. The expected price development should be included in the calculation of the basic security sooner.

The adequacy of the apartment is only checked after a waiting period of twelve months. Until then, the actual costs of the apartment will be covered. The waiting period does not apply to heating costs that are granted to an “appropriate extent” from the start. Assets of up to EUR 40,000 for the first person in the benefit community are also protected for the first twelve months. For each additional person in the community, this allowance increases by 15,000 euros.

After the one-year waiting period, an asset allowance of 15,000 euros applies to each person in the benefit community. Reserves for old-age provision for the self-employed and owner-occupied residential property should also be better protected.

Since 2005, the job centers had been disciplining uncooperative Hartz IV recipients according to the principle of “promoting and demanding” by turning off the money tap. The Federal Constitutional Court had already severely restricted this sanction practice in November 2019 after years of criticism. Most recently, a sanction motorium applied. That is now repealed. That is why reductions in citizen income have been possible again since the beginning of the year if people do not comply with their obligations to cooperate or if they do not appear at appointments.

As of July 1st, the allowances for all employed persons will be increased. With an income between 520 and 1000 euros, 30 percent of it can be kept. According to the Federal Ministry of Labor this means up to 48 euros more in the purse than before. Young people are allowed to keep the income from school and student jobs and from vocational training as well as the pocket money from a federal voluntary service or a voluntary social year up to the mini-job limit of currently 520 euros. Income from student jobs during the holidays is not taken into account.

Citizens’ allowance recipients can receive holistic coaching. There are more continuing education awards. A monthly training allowance of 150 euros is now possible for the unemployed and employees. In addition, those affected can have more time to study.

The requirements for citizen money are detailed. Some victims may just want to know how much financial aid they can expect. Stiftung Warentest operates a citizen income calculator that provides important information. The following calculations are intended to show how changed requirements affect the amount of citizen income. Some of these are arbitrary assumptions.

Important: Interested parties should make an appointment with their responsible job center to get legal advice.

Example 1, assumptions:

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Example 2, assumptions:

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Example 3, assumptions:

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Example 4, assumptions:

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Example 5, assumptions:

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The reform for the new property tax is complex – and this year it will require owners. You have to submit some data to the tax office. You have to be very precise and observe special deadlines. In our large guide you will find all the information you need to know in a compact form.