“The benefits would become more and more attractive compared to jobs in lower income groups,” criticizes the German district association with regard to the planned citizen’s income.
(Photo: imago images/Ralph Peters)
Berlin In view of the planned increase in the standard rates for basic state security, calls are being made to do more for low-income workers. The chairman of the Christian-Democratic Workers’ Association (CDA), North Rhine-Westphalia’s Minister of Social Affairs Karl-Josef Laumann (CDU), brought a new method for calculating the statutory minimum wage into play. The FDP is pushing for tax breaks for low earners.
Criticism of the planned citizens’ benefit is also based on the fact that the traffic light with generous regulations for the crediting of assets or low requirements for the obligation to cooperate of benefit recipients hardly provides any incentives to take up work and thus overcome the need for help. “Receiving benefits would become more and more attractive compared to jobs in lower income groups,” said the German district association on Monday in the hearing on the law.
Conversely, for employees in the low-wage sector, the question arises as to why they should still go to work if, in the end, despite a full-time job, they only have more money at their disposal than recipients of basic income benefits with top-up social benefits.
The CDA has therefore been campaigning for changes in the low-wage sector for a long time, because many people are poor despite working, Laumann told journalists. He proposes changing the calculation method for the statutory minimum wage.
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The governing coalition argues that it has just raised the minimum wage by 22 percent to twelve euros and has given six million people what is possibly the biggest “wage jump in their lives”, as Labor Minister Hubertus Heil (SPD) said.
>> Read here: Traffic lights and countries continue to argue about citizen income – there is also criticism of the housing benefit reform
But Laumann is already thinking ahead. The Minimum Wage Commission, made up of employer and employee representatives, which will decide on the adjustment from 2024 in the coming year, is required to follow the collective wage development afterwards. Laumann pointed out, however, that the relevant index does not include one-off payments, such as those often agreed in recent collective bargaining rounds. The index therefore reflects the actual wage development only insufficiently.
Of course, the next time the Commission makes a decision, it will do an overall assessment and orientate itself towards the collective wage development, said DGB board member Stefan Körzell, who is a member of the committee. The Commission also has to take into account the new European minimum wage directive, which stipulates that the minimum wage should be around 60 percent of the national average.
In addition, Minister of Labor Laumann has it in his hands to quickly ensure better conditions in North Rhine-Westphalia. “He should set a good example and ensure more collective agreements,” said Körzell. “This includes a collective bargaining agreement that deserves its name.”
FDP announces tax breaks for employees
Employees whose income is not sufficient to cover their living expenses can top up their wages with social benefits. However, only on request. And in contrast to recipients of citizenship income, they also have to prove down to the smallest detail that they are actually in need, Laumann said.
>> Read here: Traffic light agreed on changes to citizen’s income – only reasonable heating costs will be covered
The traffic light coalition is also starting here, said the chairman of the Bundestag Committee for Labor and Social Affairs, Bernd Rützel (SPD). “We must ensure that employees do not forgo top-up benefits out of shame or ignorance. That’s why we want to automate it more, like now with housing benefit.”
Rützel considers Laumann’s minimum wage initiative to be a “diversionary tactic” in the dispute over citizen income. The Union refused to raise the minimum wage or increase collective bargaining. It is therefore surprising that she is now campaigning for a new calculation method.
The deputy FDP federal chairman Johannes Vogel announces tax relief for employees if, as planned, the standard rates for basic security are raised from 449 euros a month for singles to 502 euros at the turn of the year: Increase income tax allowances,” said Vogel. Especially in the crisis, smaller incomes should be relieved more.
And those who work must always have noticeably more money available than someone who does not work. “It’s a question of fairness,” Vogel said. The traffic light coalition therefore also wants to reform the additional earnings limits with the citizen benefit reform. Employees without children could then keep up to 348 euros a month from their income instead of the current maximum of 300 euros. For employees with children, it will be 378 instead of 330 euros in the future.
More: The new citizens’ income – what the federal government is planning in concrete terms