The CFO of the Federal Employment Agency, Christiane Schönefeld, is in favor of postponing the introduction of the citizen’s income: “We have urgently asked the Federal Minister of Labor to gradually introduce the new rules on the citizen’s income by July 2023,” said Schönefeld of the Düsseldorf “Rheinische Post”. “I explicitly exclude the higher standard rate from this, which we will implement in January.”
The higher standard rate is correct because the prices are rising enormously, said Schönefeld. At the same time, she emphasized: “We will not be able to implement everything by January 1st, there is no time for that because the law has not yet been passed.”
Citizens’ income is to replace the previous Hartz IV benefits at the beginning of next year. In mid-September, the federal cabinet in Berlin approved the draft law by Federal Labor Minister Hubertus Heil (SPD). The standard rate for an adult will increase from EUR 449 to EUR 502 per month. Spouses and life partners will receive almost 50 euros next year, children between 33 and 44 euros more. The citizens’ allowance is a response by the coalition of SPD, Greens and FDP to decades of protests against the Hartz IV system.
The contribution to unemployment insurance is sufficient as long as the energy crisis does not get worse, Schönefeld continued: “The contribution will be 2.6 percent again as planned in 2023, the temporary reduction to 2.4 percent will expire at the end of the year. We can get by with that in the next few years – but that only applies if the labor market remains stable.”
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