Germany 2024: Key Changes You Should Be Aware Of
Get ready for the year 2024, as Germany is gearing up for significant changes. With the upcoming Opportunity Card, the nation aims to welcome millions of new residents. Moreover, a groundbreaking law is set to provide fathers and second parents with paid leave following the birth of a child. Explore all the exciting changes in Germany for 2024!
Exciting Changes in Germany 2024: Anticipated Revisions to Immigration and Citizenship Laws
In the upcoming year, Germany is set to undergo significant transformations, particularly in the realm of immigration and citizenship. One of the most noteworthy developments is the anticipated introduction of the country's new dual citizenship law. This change holds promising prospects for expatriates in Germany. Additionally, there are exciting developments on the horizon for individuals contemplating a move to Germany for the first time.
Changes in Germany 2024: New Dual Citizenship Law
Get ready for a significant shift in Germany's citizenship landscape as the country gears up for the implementation of its updated dual citizenship law in 2024. After navigating a series of legislative twists, the latest version of the law has gained coalition approval, paving the way for a second reading in the Bundestag and a potential vote in January 2024. If all goes according to plan, the law could be officially in effect by April 2024.
Under the revised law, residents who have lived in Germany for just five years will now qualify for a German passport while retaining their original nationality, allowing for dual citizenship. For those demonstrating outstanding achievements in their professions and possessing a high level of proficiency in German (C1 level), citizenship eligibility can be fast-tracked to just three years.
The impact of the law extends to older individuals and children as well. Citizens aged 67 and above will no longer be required to prove B1-level language skills or pass a naturalization test. Furthermore, children born to non-German parents within the federal republic will soon be eligible for a passport if at least one parent has legally resided in Germany for a minimum of five years at the time of the child's birth.
Stay tuned for our comprehensive coverage of every development surrounding the dual citizenship law in Germany throughout 2024. We'll keep you informed with the latest updates on this transformative legal shift.
Unlocking Changes in Germany 2024: Embrace the Opportunity Card
As of May 31, 2024, Germany is undergoing transformative immigration changes, especially beneficial for those eyeing relocation. A pivotal aspect of this shift is the Opportunity Card law, designed to simplify the process for non-EU citizens.
This new phase of the skilled worker law introduces the Chancenkarte (Opportunity Card), providing individuals from non-EU countries the chance to spend a year in Germany with the added flexibility of part-time work. Unlike previous prerequisites, applicants must now demonstrate two years of vocational training or possess a university degree, coupled with proficiency in either A1-level German or B2-level English.
Once granted, Opportunity Card holders can engage in part-time work (up to 20 hours per week) or explore an unlimited number of two-week trial jobs during their one-year stay. The card's validity can also be extended for an additional two years.
The overarching goal is for Opportunity Card holders to utilize this timeframe to secure long-term employment in Germany. Upon completing the one to three years covered by the card, those who successfully secure permanent employment become eligible to apply for a permanent residence permit.
For a deeper dive into this exciting opportunity, visit the German government’s Chancenkarte website."
Changes to social security
If you receive, or think you may be newly eligible for, any social security benefits in Germany, you’ll want to know about these key changes in 2024:
Changes in Germany: Income Thresholds for Health Insurance and Pensions to Increase in 2024
When it comes to health insurance and pensions in Germany, significant changes are on the horizon for 2024. Currently, individuals looking to opt for private health insurance instead of contributing to statutory health insurance must earn a minimum of 66,000 euros per year. However, starting in 2024, this income threshold will be raised to 69,300 euros per year before tax.
As of now, all statutory health insurance plans in Germany share the same basic rate, amounting to 14.6 percent of your gross salary. This contribution is evenly split between you and your employer, each contributing 7.3 percent. Nevertheless, the approaching year will bring modifications to the Beitragsbemessungsgrenze, also known as the "contribution assessment limit." This limit determines the portion of your income considered when calculating your 7.3 percent contribution.
In 2024, the Beitragsbemessungsgrenze will see an increase from 59,850 euros before tax to 62,100 euros. This means that if your annual income before tax is 72,300 euros, your statutory insurance contributions will be calculated based on 62,100 euros, not your full income.
These adjustments also extend to the determination of contributions to the state pension. In 2024, the monthly income threshold for pension contributions will be capped at 7,450 euros in former East Germany and 7,550 euros in former West Germany. Stay informed about these changes to ensure you navigate the evolving landscape of health insurance and pension contributions in Germany.
Additional cost health insurance payments may go up
In 2024, Changes in Germany include an increment of 0.1 percentage points in Zusatzbeitrag, the additional cost for statutory health insurance. This rise affects the shared contributions of workers and employers, reaching a maximum of 1.7 percent. These extra payments grant policyholders access to services not covered by basic insurance, like professional teeth cleaning, dentures, cancer screenings for those under 30, IVF, and contraception. It's important to note that the impact on individuals varies based on the Zusatzbeitrag set by their specific health insurance provider among the 96 companies in Germany.
Parental allowance income thresholds will be lowered
Parental allowance, known as Elterngeld, serves as a social security benefit for new parents during their parental leave (Elternzeit). As of now, EU citizens, German citizens, or those with a German residence permit, caring for their child and working no more than 32 hours per week, can qualify for this benefit, provided their combined annual income before tax does not exceed 300,000 euros.
In the initial 2024 budget, Finance Minister Christian Lindner proposed halving the maximum combined annual income to 150,000 euros, making 60,000 families ineligible for Elterngeld. Critics argued that this contradicted the original purpose of Elterngeld – reducing gender inequality in parenting couples by promoting mothers' financial independence and encouraging fathers' active involvement in child-rearing.
Facing backlash, Lindner reconsidered, announcing a gradual reduction in the income threshold. Starting from April 1, 2024, the threshold will decrease to 200,000 euros, followed by another reduction to 175,000 euros from April 1, 2025.
For single parents, the income threshold will decrease from 250,000 euros before tax to 150,000 euros on April 1, 2024. However, there will be no further changes to the threshold for single parents on April 1, 2025.
Changes to how parental leave can be divided between parents
A significant shift is happening in the way parental leave operates in Germany. Until now, both parents were entitled to a total of 14 months of parental leave, which they could flexibly divide between themselves. Additionally, they had the option to take leave simultaneously. However, for babies born after April 1, 2024, there's a new rule in place.
Now, parents can only take one month of leave together, requiring one parent to be back at work during the other 13 months. Exceptions to this rule include cases where parents welcome multiple babies simultaneously or if a baby is born prematurely. These changes mark a notable adjustment in how parental leave is structured in the country.
Child maintenance payments will increase
Starting in 2024, there are noteworthy changes in Germany regarding child maintenance payments for divorced or separated parents. The adjustments are aimed at providing increased financial support for underage children. Parents will now be required to contribute more to meet the needs of their children. The minimum maintenance for children up to the age of six has been raised to 480 euros per month, a 43-euro increase. Similarly, for children aged six to 12, the minimum payment has risen by 49 euros, reaching a minimum of 511 euros per month. Parents of children aged 13 to 18 will now need to pay a minimum of 645 euros per month. It's important to note that these amounts represent the minimum payments and are subject to upward adjustments based on the parent's income, following the guidelines outlined in the Düsseldorf Table. Stay informed about these Changes in Germany to ensure compliance with the updated regulations.
Citizens’ allowance payments will rise
In 2024, individuals receiving citizens' allowance (Bürgergeld) unemployment benefits in Germany will experience noteworthy changes. The monthly payments for single claimants will witness a 12 percent boost, increasing from 502 euros to 563 euros. Additionally, parents and caregivers availing Bürgergeld will see enhanced monthly payments for each child under their care. Teenagers aged 15 to 18 will now yield 471 euros instead of the previous 420 euros, while children between seven and 14 will receive 390 euros, marking a monthly increase of 42 euros. Lastly, for children under six, the monthly payment will rise from 318 euros to 357 euros. Stay informed about the Changes in Germany for 2024.
Changes affecting working people
There are several new regulations which will reshape working life in Germany in 2024:
Statutory minimum wage will go up
From January 1, people who are working in Germany will be legally entitled to at least 12,14 euros per hour, an increase from the 2022 rate of 12 euros.
The minimum wage is already scheduled to increase again from January 2025, when it will rise to 12,82 euros.
Minijob income threshold will rise
In Germany, there are upcoming changes to wage laws affecting those in Minijobs. Minijobs enable individuals to earn a specific amount monthly without facing tax obligations. Starting January 1, the tax-free income limit for Minijobs will rise from 520 euros to 538 euros per month. Additionally, the annual limit for tax-free earnings in Minijobs will increase to 6,456 euros.
Germany will introduce 10-day paid paternity leave
Starting in 2024, changes in Germany include an expansion of parental leave rights. Fathers or second parents (non-birthing parent) will now enjoy a significant shift, with a provision of 10 days of paid leave following the birth of their child. Importantly, this duration won't impact their existing paid vacation days, nor will it deduct from the allotted time for Elternzeit (parental leave).
This noteworthy adjustment will be formally incorporated into Germany's Maternity Protection Act (Mutterschutzgesetz), complementing the existing provisions for maternity leave. Expectant parents will find this especially beneficial, as it grants six weeks of fully paid leave before the due date and an additional two months of leave post-birth.
Notably, the new paternity leave, referred to as Vaterschaftsurlaub, won't require a separate application process. It automatically takes effect from the day the child is born, streamlining the process for parents to access this essential time off.
Changes to the tax system in Germany
The German tax system can be confusing territory. Here are the most important changes that are coming to taxation in 2024:
Basic tax-free allowance threshold to rise
In 2024, Changes in Germany include an increase in the basic tax income threshold (Grundfreibetrag) from 10,908 euros to 11,604 euros starting January 1. For married couples, this amount rises to 23,208 euros. Any income below these figures won't be subject to taxation in the new year.
Child tax exemption rate will rise
In 2024, changes in Germany will impact parents positively as the threshold for monthly income taxation is set to increase. The new child tax exemption (Kinderfreibetrag) rate is expected to rise from 6,024 euros to 6,384 euros.
Changes to transport
2023 was the year of the Deutschlandticket, the slightly disappointing older sibling of the ever-wonderful 9-euro ticket. What will 2024 have in store for us when it comes to hopping around the country?Get ready for some significant changes in Germany this year! Here's what you need to know:
Fare Hike for Deutschlandticket
Brace yourself for a change in your monthly travel expenses. The 49-euro Deutschlandticket, which provides unlimited access to local and regional public transport across the country, is set to become pricier. The proposed increase is from 49 euros to 59 euros per month. The exact date for this fare adjustment is still pending confirmation, but it's on the horizon.
Return of the 29-Euro Ticket in Berlin
Good news for Berliners! BVG, the local transport association, plans to reintroduce the popular 29-euro public transport ticket in 2024. Although the relaunch date is tentatively set for July 1, 2024, it's not officially confirmed. This monthly ticket offers unlimited travel within the AB zone, covering the inner city and most of suburban Berlin. Get ready to welcome back this budget-friendly option!
End of Electric Car Subsidies
Germany's budget crisis has led to a tough decision—the government is scrapping subsidies for electric cars sooner than originally planned. The subsidy program, initially scheduled until the end of 2024, will now be terminated earlier. The specific cutoff date is yet to be announced. If you're in the process of purchasing an electric car but haven't registered it yet, this news might impact your eligibility for the subsidy.
Black Box Requirement for Cars
Starting from July 7, 2023, a new regulation mandates that newly registered cars in Germany must be equipped with an event data recorder box, similar to the black boxes on airplanes. This box will provide crucial information in the event of a road accident, adding a layer of safety and accountability to the driving experience.
Stay informed about these Changes in Germany 2024 to navigate the year with ease!
Changes affecting consumers
If all goes to plan, 2024 will see Germany introduce a landmark law which could influence other countries in Europe to follow in its footsteps:
Cannabis Legalization
- In April 2024, Germany is set to legalize cannabis.
- Individuals can join Cannabis Social Clubs to legally purchase and grow their own cannabis.
- Age restrictions apply, with those between 18 and 21 limited to cannabis with a 10 percent THC content and a monthly purchase limit of 30 grams. Those over 21 can buy up to 50 grams per month.
Gas Price Cap Removal
- Effective December 31, 2023, the gas and electricity price cap introduced in 2023 will be removed.
- This may lead to increased home utility costs as the cap previously kept prices affordable.
VAT Increase in Cafes and Restaurants
- The VAT rate for cafes and restaurants will be raised from 7 percent to 19 percent.
- Dining out for food and drinks in Germany will become more expensive in the new year.
Building Energy Act Enforcement
- From January 1, 2024, a modified version of the Building Energy Act (GEG) will take effect.
- Building owners must ensure that newly installed heating systems are powered by at least 65 percent renewable energy.
Pfand for Plastic Milk Bottles
- Starting in 2024, plastic milk bottles will be included in Germany's Pfand (bottle deposit) scheme.
- This expands the initiative, which already includes beer, fizzy drinks, and juice containers.
