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Germany Today

German news in English

Thursday, October 17, 2024

Germany Tightens Bürgergeld Rules to Boost Economy

Published: 2024-07-07

The German government has agreed on stricter measures for Bürgergeld recipients as part of a broader economic growth initiative.

Recipients will now be required to accept jobs with up to three hours of daily commute time.

The protected savings limit will be reduced from €40,000 to €15,000, and the grace period for using savings will be shortened to six months.

Jobcenters can impose immediate 30% benefit cuts for three months if recipients refuse suitable work without good reason.

These changes aim to address Germany's skilled labor shortage and incentivize employment.

Additionally, the government plans to make overtime and working beyond retirement age more attractive by reducing taxes and social security contributions on extra hours worked.