On January 1, 2025, significant changes will take effect in Germany, impacting workers, employers, and citizens.
Here’s a brief overview of the key changes:
Minimum wage increase
The legal minimum hourly wage is increasing from 12.41 euros to 12.82 euros gross per hour.
Changes in mini jobs:
The maximum monthly salary for mini jobs will rise from 538 euros to 556 euros, equating to 6,672 euros annually.
Increase in the basic personal allowance:
The basic personal allowance, the untaxed portion of income, will increase to 12,084 euros per year, with a further increase to 12,336 euros planned for 2026.
Increase in the care allowance:
Individuals requiring care at levels 2 to 5, who are cared for at home, will receive a 4.5 percent increase in benefits. For example, the care allowance for level 2 will rise from 332 euros to 347 euros per month.
Changes in sectoral minimum wages:
- In the electrical industry, the minimum hourly wage will be 14.41 euros.
- In the roofing industry, the minimum hourly wage will increase to 16 euros.
Housing allowance increase:
The housing allowance will increase by an average of 15 percent, or roughly 30 euros more per month.
These changes aim to improve citizens’ living standards, adjust to economic conditions, and provide additional financial support to various groups within the population.
