Changes in January 2023: What's new - child benefit, pension, energy flat rate
Created: 01/01/2023 13:25
By: Alina Schroeder
With the turn of the year, several changes and new regulations will come into force.
Read here what will apply from January 2023.
Berlin – New year, new laws: From January 2023, some changes will come into force in Germany.
One of the biggest issues is citizen income, which Hartz IV will finally replace after much political discussion.
In addition, there are new regulations for child benefit, housing benefit and pensions, as
reported
by fr.de.
Here is an overview of the laws that will apply from January 1st and what that means for citizens.
Changes in January: Citizens' benefit is coming - child benefit and housing benefit are increased
The government has been planning a new basic income in Germany for a long time.
The previous Hartz IV system, which came into force in 2005, is to be replaced.
Now, in January 2023, the time has come: Citizens' income is coming.
This brings more money to those in need, because the basic security increases to 502 euros a month for single people.
With Hartz IV, the amount was still 432 euros.
In addition, the allowance for savings was adjusted.
15,000 euros are protected per person and are therefore not counted towards the entitlement to citizen income.
A change for all parents: For the first time in around 30 years, child benefit will be significantly increased and standardized.
From January 2023, this will increase to EUR 250 per child per month.
"Low-income families will also be relieved by an immediate surcharge and an increase in the child surcharge," it says on the federal government's website.
The child allowance will also be adjusted.
In 2022 it was still 5620 euros, in 2023 the sum will increase to 5760 euros.
In 2023 there will also be housing benefits for more people, which will also be significantly increased.
So far, around 600,000 households have received housing benefit, and from January two million will benefit from it.
Instead of 190 euros, lower-income tenants will then receive around 370 euros a month.
This adjustment is part of the housing benefit reform, which was implemented due to the increased energy costs, among other things.
Legal changes from January 1, 2023
Citizen's income replaces Hartz IV
increase in child benefit
increase in housing benefit
Elimination of the additional earnings limit for the pension
Pension contributions are tax deductible
Energy flat rate for students
increase in the basic allowance
Increase in the top tax rate
From January 2023: Changes to the pension - energy allowance for students
The following regulations come into force for pensions: From January 2023, early retirees can earn any amount of money in a part-time job without having to fear cuts.
The additional earnings limit is no longer applicable.
In view of the corona pandemic, this was only increased to EUR 46,060 for early retirement pensions in 2022.
Changes to the additional earnings regulations also apply to the disability pension.
At the turn of the year, pension recipients can earn up to EUR 35,650 with a partial reduction in earning capacity, with a full reduction in earning capacity the limit is EUR 17,820.
In addition, recipients can look forward to a tax relief on income tax, because pension contributions are now completely tax-deductible from January.
They count as expenses for old-age provision.
In the course of 2023, even more pension changes will come into force.
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After the majority of all pensioners in Germany had already received the energy flat rate of 300 euros in December 2022, it could be the turn of the students in January.
"The payment should begin at the beginning of next year, i.e. this winter," says the Federal Ministry of Education and Research.
If you are enrolled at a university or technical school, you will receive a one-off payment of 200 euros from the state to cover the increased energy costs.
Tax changes from January: Basic allowance and top tax rate
Employees will have tax relief from 2023: As part of the Inflation Compensation Act, the federal government has decided to increase the basic allowance – to EUR 10,623.
Previously, this was 10,347 euros.
The subsistence level should thus continue to be guaranteed even in the current economic situation.
In the course of adjusting the basic tax-free allowance, the top tax rate was also revised.
This is currently 42 percent, but will only be due from 2023 if your income is even higher.
The limit of 58,597 euros was raised to 61,972 euros per year.
However, there is no change in the tax rate for the wealthy, which applies from an income of 277,836 euros.
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