Germany Wages are Changing: What You Need to Know

germany wages

Why and how wages in Germany will change

The financial burden continues to grow, especially for people with low but also average incomes. A small change in taxation means a plus in the bank accounts of millions of workers as early as July. The tax-free base allowance and the allowance for employees will increase, and now workers will receive a slightly higher net salary.

germany wages

What have the payroll experts showed

The tax experts calculated for the Berliner Zeitung the exact amount of benefits in detail.

One-time bonus per child of 100 euro

Second example: For a single parent with one child in tax class II with a gross monthly salary of 3,500 euro (not subject to church tax), the benefit, calculated in July, is about 11 euro per month. Adding the repayment, the tax credit in July is 77 euros. Also, a one-time bonus per child of 100 euros was introduced in July.

Wages in Germany will change: freelancers and retirees

To alleviate the situation for taxpayers, the government will have to make further improvements,” the expert says. Right now, only workers will enjoy the increased base tax credit. While freelancers and retirees will also benefit as they don’t pay income tax, the relief will only become noticeable with a 2022 tax return.

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