Maintenance, minimum wage, Hartz IV: Experts explain what's new since 2022

Created: 01/20/2022, 14:42

By: Anne Hund

The new regulations bring financial consequences for many citizens.

© Felix Schlikis/Imago

Some changes in the law came into force on January 1st.

They affect employees, mini-jobbers, maintenance payers, Hartz IV recipients and, for example, early retirees. 

The new year has brought some

with it, which are also noticeable in the

of those affected .

The experts from the Bavarian wage tax assistance (Lohi) explain what has changed for whom

:

increased tax allowance

The

allowance represents the limit for the taxable income up to which no taxes have to be paid, as Lohi Bayern explains in its announcement.

What has changed with the new year?

“For single people it increases to 9,984 euros.

That makes an increase of 240 euros compared to the previous year.” Spouses who are jointly assessed for income tax are entitled to twice the amount of 19,968 euros.

"Employees and tax-paying pensioners have slightly more money at their disposal," the tax experts concluded.

Adjusted maximum alimony

The

was therefore adjusted to the basic allowance.

“In 2022 it will also be 9,984 euros.

Taxpayers can deduct this amount annually as extraordinary expenses if they have to make maintenance payments to their children or ex-spouses or to their adult children who are no longer entitled to child benefit or other needy relatives and if they meet the other legal requirements.

Also read:

minimum wage increased

Since January 1,

have received a

for their work

instead of the previous hourly rate of EUR 9.60.

The next wage increase has already been determined: on July 1, 2022, the minimum wage will be raised again.

It then rises to 10.45 euros.

The traffic light coalition also wants to raise the minimum wage to 12 euros in the future.

Training allowance improved

"Apprentices who are not subject to a collective wage agreement have also been receiving more money from this year, according to Lohi Bayern.

The legislator has raised the

to 585 euros per month.

In the second year of training there is 18 percent more, in the third year 35 percent and in the fourth year 40 percent more.

However, this rule only applies to young people who are starting their training this year.”

Also read:

Hartz IV rates increased

For single adults, the standard rate has been 449 euros per month since January 1, as Lohi explains on the

. "For spouses or life partners there is an additional 404 euros, for adults under the age of 25 in the same household 360 euros and for young people from 14 to 17 years 376 euros." These Hartz IV rates are all increased by three euros per month and the Standard rates for younger children, on the other hand, have only been increased by two euros. "Accordingly, parents receive 285 euros per month for children up to five years of age, and 311 euros for children between six and thirteen years of age." Critics say the increase does not go far enough. According to calculations by the comparison portal Verivox,

 will continue to do so even after

 not receiving enough money to cover their electricity bills.

Also read

Surcharges for long-term care insurance

For childless, legally insured persons aged 23 and over, it will be “a bit more expensive” this year, according to Lohi Bayern.

Because the

will be raised from 0.25 to 0.35 percent for childless people.

“The monthly contribution can increase by up to 4.80 euros.

The contribution to statutory long-term care insurance is therefore 3.4 percent of gross income and is capped at a maximum of EUR 164.50 due to the contribution assessment limit.

Parents continue to pay 3.05 percent and a maximum of 147.50 per month.”

Deductibility of retirement savings

“Contributions to statutory pension insurance, basic pensions (better known as Rürup pensions) or professional pension schemes are income tax deductible.

In 2022, singles can claim 94 percent as special expenses up to a maximum of 25,639 euros.

"While the maximum amount has fallen slightly compared to the previous year, the deductible portion has been increased by 2 percentage points."

In the case of joint assessment, twice the maximum amount applies.”　

Also read

Increased limit for benefits in kind

So far, "benefits in kind were tax- and social security-free up to a maximum of 44 euros," the experts explain.

The exemption limit had “increased to 50 euros per month with the New Year”.

In return, stricter limits have been set for

and

: "In the future, they will only be considered benefits in kind if they only entitle the holder to purchase goods or services and meet the criteria of the Payment Services Supervision Act," says Lohi.

"Therefore, debit cards that can be used for cashless payment transactions and vouchers with unlimited redemption options are no longer subject to the non-cash exemption limit."

Higher additional income for early retirees remains

According to Lohi, retirees

in early retirement can “continue to earn significantly more this year, namely up to 46,060 euros on the side, without their pension payments being reduced”.

The temporary increase in the

remain as a result of the ongoing corona pandemic.

"Normally, 40 percent of the earnings that exceed the maximum limit are offset against early retirement," the experts explain.

This regulation does not apply to seniors who have already reached the regular retirement age.

Changes in mini-jobbers

and health insurance

mini-jobbers since January 1, 2022

, as Lohi Bayern also informs.

"This ensures that short-term mini-jobbers are covered by statutory, private or foreign health insurance in the event of illness." In return, employers receive feedback from the mini-job center with regard to social security obligations as to whether the mini-jobber has other short-term jobs or the same one year, according to the experts.

"However, these new regulations do not apply to minor jobs in private households!"