As of: January 18, 2024, 7:31 p.m
By: Robin Dittrich
Comments
Press
Split
Citizens' benefit replaced unemployment benefit II on January 1, 2023. A study now contradicts the view that working is therefore not worthwhile.
Frankfurt - Citizens' money is intended to ensure a humane minimum subsistence level for those who cannot cover their living expenses from their own income.
Is it still worth working if you can also receive citizen's money?
Essay on citizen's money: Work is still worthwhile in Germany
The federal government writes that anyone who is employed and cannot cover their living costs from their own income receives citizen's benefit.
Since January 1, 2024, single people or single parents have received a standard rate of 563 euros per month.
There is a widespread opinion that it is no longer worthwhile to earn more money because many costs can already be covered by citizens' money.
However, a study by the Ifo Institute has now come to a different conclusion.
A study by the Ifo Institute has now refuted the widespread claim that working despite citizens' money is no longer worthwhile.
© Revierfoto/Imago (symbol image)
“In Germany, work always leads to higher incomes than doing nothing,” said the Munich Economic Research Institute on Wednesday.
However, there is one prerequisite for this, without which this does not necessarily apply: low earners must also apply for the possibility of topping up their income through additional social benefits.
If you don't receive any money from the state, you could actually earn less money from your work income than you would get from citizen's money.
Ifo Institute clarifies: “The claim made is simply wrong”
The head of the Ifo Center for Macroeconomics and Surveys, Andreas Peichl, added: “The claim made by some politicians that those who only receive social benefits receive more net than a low-income earner is simply wrong.” To confirm this statement, asked the institute also provides calculation examples.
Accordingly, a single person in a city with medium rent levels like Dresden with a gross income of 1000 euros can earn 891 euros net with the help of additional social benefits.
Available income of different households according to the Ifo Institute:
Household type |
Gross Income |
With social benefits |
Without social benefits |
Citizen's allowance income |
|---|---|---|---|---|
single |
1000 Euro |
891 euros |
357 euros |
563 euros |
single |
2000 Euro |
1020 euros |
965 euros |
563 euros |
single parent |
1000 Euro |
2033 euros |
622 euros |
1553 euros |
single parent |
2000 Euro |
2489 euros |
1320 euros |
1553 euros |
Single earner couple |
1000 Euro |
2127 euros |
502 euros |
Depending on income |
Single earner couple |
2000 Euro |
2442 euros |
1226 euros |
Depending on income |
Dual-earner couple |
1000 Euro |
2159 euros |
630 euros |
902 euros |
Dual-earner couple |
2000 Euro |
2617 euros |
1375 euros |
902 euros |
My news
Helmet requirement when cycling – the federal government’s decision has been made
Man loses six kilos in 30 days - and only forgoes reading one thing
1st place surprises – This is the healthiest fruit in the world
Pensioner should pay a fine because he parked at Lidl for 39 minutes and didn't buy enough
New DHL scam: Criminals gamble by reading parcel cash on delivery
GDL threatens a new rail strike – the current stand read
In contrast, there is the citizen's allowance, which only amounts to 563 euros.
The economist Manuel Pannier confirmed that work for single people is only worthwhile with additional social benefits: “If a single person with a gross income of 1000 euros does not apply for any social benefits, then he ends up with 357 euros net.” According to the According to economists, this is the best solution to get more net from gross.
(
rd/dpa
)