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Citizens' money: Craft criticizes the standard rate as too high

2022-09-12T04:55:58.857Z


In the trades, wages are often low – and the shortage of staff is high. Now the association fears the planned citizens' income: For low earners, the incentive is great not to work anymore.


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Craft President Wollseifer: “Demotivation among those who work regularly with a low salary”

Photo: Sven Hoppe / dpa

Labor is becoming scarce in Germany.

Almost every industry reports a shortage of staff, never before have so many companies had to go without business because they lack the people.

This is particularly pronounced where low wages are paid – such as in parts of the trades.

In this context, the trade association is now criticizing the federal government's basic income concept.

The planned successor system to Hartz IV sets false incentives for low earners: »It demotivates those who work regularly with a low salary.

At the lower end, the boundaries between regular work and basic income are becoming increasingly blurred," said the President of the Central Association of German Crafts (ZDH), Hans Peter Wollseifer, of the "Rheinische Post".

Many wondered why they should be working at seven in the morning when people receiving citizenship income received almost the same, according to the President of the Trades and Commerce: “The improvements for recipients of the protective assets, the elimination of sanctions, the significant increase in the standard rate, the complete takeover the sharp rise in heating costs - all of this will mean that for more people than before, not working is more worthwhile than working.«

The draft law by Minister of Labor Hubertus Heil (SPD) to introduce citizen income as a successor to Hartz IV from January 1, 2023 is to be passed by the cabinet this Wednesday.

According to Heil's plans, the standard rate of the new citizens' income should be 502 euros per month for single adults.

This is intended to increase the previous Hartz IV rate by more than 50 euros from January 1, 2023.

However, this increase is not based on a fundamentally different calculation method than the previous basic security – for which Heil had spoken out when presenting his plans.

Instead, the previously applicable adjustment of the standard rates to inflation was adjusted: Up to now, the standard rates only followed the price increases at a huge time lag.

Expected inflation will now also be included in the increase in the future.

fdi/dpa

Source: spiegel

All business articles on 2022-09-12

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