The future remains uncertain. That much is certain. Apart from that, there are also many innovations and laws to come in the new year. These changes in the areas of money and income then become important, as the North Rhine-Westphalia consumer advice center informs.
Citizens' allowance instead of Hartz IV
On January 1st, the citizen's income will replace the previous basic security. With the introduction of citizen's income, the standard rate of basic security for the unemployed will increase from 449 to 502 euros per month. The allowances on income between 520 and 1000 euros are to rise to 30 percent in order to increase the incentive to take up work. In addition, a further training allowance of 150 euros will be introduced when taking up qualification-related further training.
After the bill failed to find a majority in the Bundesrat, the government and opposition agreed on an asset allowance of EUR 40,000 for a single person and EUR 15,000 for each additional person in the household, and on retaining the sanction options for misconduct from the first day of benefit receipt.
Minimum wage increases in many sectors
With sector-specific minimum wages set in collective agreements, employees in some sectors can look forward to an increase right at the beginning or in the course of the year. As if there were:
The year 2023 will also bring higher minimum wages for employees in geriatric care. An increase is planned for May 1st and again for September 1st:
Minimum wage for elderly care (in euros per hour)
There is also more vacation for employees in geriatric care: employees who work a 5-day week are entitled to 9 days more than the statutory vacation entitlement of 20 days in 2023.
Minimum wage for trainees is also increasing
Prospective trainees can also look forward to more money in 2023: anyone who qualifies for the trade or company of their choice from the calendar year onwards will receive the statutory minimum training allowance of 620 euros per month in the first year of training (previously: 585 euros for the 2022 training year). There are surcharges for the second, third and fourth year of training. The trainee receives 18, 35 or 40 percent more than the starting amount of the first year of training. This takes into account the growing contribution of trainees to operational value creation.
The minimum remuneration applies to trainees who are being trained in a profession regulated by the Vocational Training Act or the Crafts Code. The collective bargaining parties are of course free to set higher training allowances: For example, the collective wage agreement in the building cleaning trade has provided for an increase in training allowances since October 2022, so that trainees receive 900 euros in the first year, 1035 euros in the second and 1200 euros in the third year of training. For trainees in the painting and varnishing trade, the minimum training allowance was increased on August 1, 2022: Since then, they have received 740 euros in the first year, 815 euros in the second and 980 euros in the third year of training. An increase for the new training courses is expected on August 1, 2023 in both training occupations.
The requirements for minimum training allowance do not apply to professions regulated by state law, such as educators, or to regulated professions in the healthcare sector (physiotherapist, speech therapist or ergotherapist).
Trainees can demand additional payment from companies that do not pay the respective minimum training allowance or do not pay it on time. In addition, the companies face penalties for administrative offenses of up to 5000 euros. The minimum training allowance has been stipulated in the Vocational Training Act since January 1, 2020.
child support increases
From January 1, 2023, there will be a uniform monthly government support of 250 euros per child. Child benefit is currently 219 euros for the first and second child. For the third child it is 225 euros. For the fourth and each additional child, it is already 250 euros. In the new year, families will receive an additional 31 euros per month for the first and second child, and an increase of 25 euros for the third child.
Car insurance is often more expensive
Many car insurance policies will become more expensive in 2023. The major hail damage, especially to motor vehicles in June 2021, will play a decisive role here, as will the high inflation of recent months, which has increased the costs of claims settlements. In addition, there is a classification into more expensive regional classes for 10.1 million motor vehicles. Regional classes reflect the loss balances of regions in liability and comprehensive insurance. The more damage was caused, the more expensive it will be for individuals in these regions in the future.
It is worth comparing tariffs regularly: If the insurance premium increases and you only find out about this in December, you have a special right of termination. Normally, however, most contracts have to be canceled by November 30 of the year (receipt by the insurance company), namely if the insurance term corresponds to the calendar year.
Monthly garnishment-free amount is increased
As of July 1, 2023, the garnishment exemption limit will be adjusted on a regular basis. Debtors can expect a significant increase in the exemption amount. The exact amount will be announced in April 2023. Both the deposit-free basic amounts and the additional amounts, for example for maintenance obligations, will be increased. The new garnishment exemption limits apply without a transitional regulation and must automatically be observed by employers in the case of wage garnishments and wage assignments as well as by banks with a garnishment protection account.
Housing benefit for more people
The housing benefit will be increased significantly from January 1, 2023, by an average of around 190 euros per month. The specific amount depends on income, rent and place of residence and varies greatly from person to person. The circle of those entitled is also being expanded. It is intended to benefit around two million people instead of around 600,000 previously. It is planned that a heating cost component will take into account the sharp increase in heating costs. In addition, there should be a subsidy that compensates for rent increases that have taken place as a result of energy-related renovations. The NRW consumer advice center welcomes this innovation, but calls for the applications to be simplified and processed more quickly so that the aid can arrive this winter.
Investment classification for gas and nuclear energy
On the planned path to climate neutrality, there will be further taxonomy regulations from January 1, 2023. From then on, certain gas and nuclear energy activities in the EU will be classified as sustainable in the EU classification system. However, new disclosure requirements ensure more transparency. Investors can then see more easily before investing whether and how both energy sources are included. Anyone who rejects gas and nuclear energy can thus refrain from investing.
