At a time when financial insecurity remains timely, The number of German citizens needed support through state benefits has an upward trend, even among those working with full time. Chancellor Mertz has highlighted the reform of ‘Citizen’s allowance’ (*Bürgergeld*) in one of his government’s key priorities, seeking to establish, in his words, “the principle of pay in proportion to the performance.”

Increases employees who depend on allowances

According to recent statistics, about 2024 826,000 workers In Germany they received benefits such as Citizen allowance. It is an increase of 30,000 compared to 2023, even marking the first upward change since 2015. Note that in 2015 the first was established minimum wage in the country, while over a million workers were then dependent on the state. Despite the timeless reduction, the costs for benefits reached € 7 billion in 2024, increased by $ 1.3 billion compared to 2022.

It is worth pointing out by the left -wing MP, Jem Inse, who described* as “unacceptable that hundreds of thousands of people rely on state aid even though they work”,* emphasizing that* “we support low wages and perpetuate the exploitation”.

Minimum wage and living costs

Despite the increases introduced by the previous government – reaching 12 euros/hour at the end of 2022 – the minimum wage increased just in 12.82 euros/hour 2024. Recent decision provides for new increases to 13.90 and EUR 14.60 in 2026 and 2027 respectively. However, organizations such as Sanktictionsfrei point out that these increases do not follow its growth rate cost of life and the rents. In particular, within one year the average rent increased by 4.7% and in Berlin by 8.5%, which – as the founder of Helena Steinhaus points out – “Explains why more employees need benefits”. *

Reforms and social inequalities

Her role part -time It is critical in the explanation of the phenomenon. According to economist Holger Sefer of the IW Institute, the majority of those who receive benefits do not work full -time: out of 826,000, only 81,000 are full time. However, Jam Inse points out that the current minimum wage in practice is a “poverty salary”, stressing that full -time income does not allow housing costs to be covered in many major cities.

An important factor is also the care of children. Many families are forced to choose part -time due to lack of care structures, with 306,000 children under the age of three not having access to a kindergarten even though they are entitled to it. IAB research shows that the need for benefits is increasing as the number of children increases in the family.

Government movements and dialogue

The Chancellor Friedrich Mertz It proceeds to design the benefit system, aiming for more labor market integration. However, critics such as Steinhaus are concerned that the reduction of benefits will have the opposite effect and point out that the issue remains the highest remuneration for low -wage workers.

Curated by: George Passas