Changes in pension, tax relief and Hartz IV bonus: From July almost all citizens will have more money
Created: 06/29/2022, 15:38
By: Andrea Stettner
July brings more money to many people in Germany.
The reason for this are numerous changes in taxes, pensions and the minimum wage.
From July 2022, some changes will come into force that will put more money in the pockets of most people in Germany.
And the financially weaker fellow citizens can use that very well.
After all, the Ukraine war is driving up prices, which is particularly noticeable in supermarkets and electricity prices.
We can expect more money, above all from the federal government's relief package, but also changes to the minimum wage, which is slowly approaching the 12 euro mark, and to pensions are causing many people's incomes to rise.
An overview:
Changes in July: Employees, pensioners and Hartz 4 recipients will soon be expecting significantly more money.
© IMAGO/photo booth / K. Schmitt
1. Pensions are raised
The many pensioners in Germany are likely to benefit most from the changes.
From July 1, 2022, the
biggest pension increase in years
beckons .
Pensions will increase by 5.35 percent in the West and by 6.12 percent in the East.
The tax allowance will also be increased.
2. EEG surcharge will be abolished
From July 1st,
the EEG surcharge will no longer apply to all electricity customers
.
A kilowatt hour of electricity (kWh) therefore costs 3.72 cents less than before.
The operators have to pass on the “green electricity surcharge” in full to the electricity customers.
According to a report by
BR.de
, this should save a one-person household about 35 euros per year.
3. Tax relief for employees: Changes to the basic allowance, mileage allowance and income-related expenses
From July onwards, all employees will be able to see more net from the gross: As part of the relief package, some points that are relevant for the tax return will then be implemented.
This applies in particular to:
basic allowance
distance fee
income tax
The
basic
allowance increases from 9,984 to 10,347 euros per year.
In addition, the distance allowance for commuters will increase from 35 to 38 cents per kilometer driven from 21 kilometers (initially from 2022 to 2026).
The lump sum for
employees
, which can be stated as income-related expenses in the tax return, is now EUR 1,200 instead of EUR 1,000.
also read
Retirement at 63: These cohorts have the most deductions
Tax relief 2022: From July, employees will have more net salary – not everyone will benefit
4. Hartz IV bonus is paid out in July
The relief package also includes the one-off subsidy for ALG II recipients.
Hartz IV recipients receive an additional 200 euros as a bonus from July.
The exact payment date is not yet known.
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