Changes that occurred in Germany in July 2023
Germany is a nation that is constantly evolving, and July 2023 was no exception. This month brought significant changes to various aspects of the country, including work dynamics and tax payment methods. Here in this article we will look into the fundamental developments and Changes that occurred in Germany in July 2023.
Major changes in Germany in July 2023
1) Summer Holidays
Summer vacations began at different times in each of Germany’s 16 states. The last state to start its school break was Bavaria on July 28, allowing all students in Germany to enjoy their holidays together for a week. Other states started their summer vacations throughout July, with different dates for each state.
2) Improved Bürgergeld Benefits
Germany made adjustments to the Bürgergeld, which replaced the Harz IV unemployment payments system. Low-skilled workers now receive vocational training assistance to access the skilled labor market. The income exemption limit was raised, allowing individuals earning €520-€1,000 per month to have a 30% tax-free income, up from the previous 20%. Young individuals also received increased funds for various activities.
3) Higher contributions for care, especially for people without children
Under the Long-Term Care Support and Relief Act (PEUG), the general contribution rate for long-term care insurance (Pflegeversicherung) increased from 3.05% to 3.4% of gross income. Individuals without children faced an additional tax, while those with multiple children experienced a reduced impact.
4) More money given to pensioners
German pensioners received a pension increase of 4.39% in the west and 5.86% in the east, providing a standard pension amount throughout Germany. This increase in pension amounts benefited approximately 21 million pensioners in the country.
5) The simplified access to Kurzarbeit has ended
As the Covid-19 outbreak was declared over in April, normal procedures for requesting Kurzarbeit resumed in July 2023. Companies had to meet certain criteria to be eligible for the wage-replacement benefit.
6) Increasing shipping costs in Germany in July 2023
Starting July 1st, certain users of DHL delivery services may encounter increased expenses. The postage fee for a 10-kilogram package will be raised from €9.49 to €10.49. Additionally, costs for bulky goods and services such as cash on delivery will also see an increase.
7) Tax on gas storage in Germany in July 2023
From July 1st, the gas storage charge will rise from 59 cents per megawatt hour to €1.45 per megawatt hour (equivalent to 0.145 cents per kilowatt hour). As a result, the annual expenses for a single-family home consuming 20,000 KWh of gas per year will increase by approximately €18.
8) The ‘Maestro’ function will soon be stopped
German giro cards will soon no longer support the Maestro feature, impacting international payments and cash withdrawals. However, within Germany, the Giro card remains fully functional for regular transactions and withdrawals, independent of the Maestro feature. To conduct international transactions, customers can obtain a separate debit or credit card designed for use abroad. The German Banking Industry is currently selecting new partners to facilitate international card usage.
9) E-prescriptions will soon be accessible
Individuals with statutory health insurance can now use their insurance cards at pharmacies for e-prescriptions, eliminating the need for paper prescriptions.
10) Safeguard to whistleblowers in Germany in July 2023
Germany implemented safeguards for whistleblowers who expose wrongdoing, providing protection against dismissal and abuse.
These changes reflect Germany’s continuous progress and adaptability across various sectors. Staying informed about these developments is essential for residents and visitors alike, ensuring they are aware of the latest rules and laws. Germany’s future looks promising as it embraces progress, sustainability, and diversity for the benefit of its residents and the global community. Stay updated to be part of this bright future.